Oil prices strike ten-month peaks

LONDON (AFP) - World oil prices surged on Thursday to new ten-month high points amid unrest in key crude producer Nigeria and jitters about tight motor fuel reserves in the United States.

In London, Brent North Sea crude for August delivery soared to 74.15 dollars per barrel -- which was last seen on August 15, 2006. The contract later stood at 73.92 dollars, up 87 cents from Wednesday's close.

On Thursday, New York's main oil futures contract, light sweet crude for delivery in August, hit 72.05 dollars per barrel -- the highest level since August 25. It later stood at 71.93 dollars, marking a gain of 52 cents.

"Crude futures pushed even higher (on Thursday), extending gains from yesterday ahead of today's (US) fuel inventories report," said Sucden analyst Andrey Kryuchenkov.

He added: "There was more news about fresh violence in Nigeria this morning, where gunmen kidnapped a 3-year-old daughter of an an expat working in Port Harcourt, as violence escalates in the region."

In Nigeria, Rivers State police spokeswoman Ireju Barasua identified the girl as Margaret Hill and said she was snatched as she was being dropped at her school.

The incident came barely 24 hours after Wednesday's kidnapping of five foreigners -- two New Zealanders, an Australian, a Lebanese and a Venezuelan -- working for a drilling company, Lone Star, in the same Rivers State.

The five were in the process of drilling a well for Anglo-Dutch oil giant Royal Dutch Shell in the Soku region when they were seized.

Nigeria, which is the world's sixth-largest oil producer, pumps 2.6 million barrels per day of crude but is losing some 25 percent of its exports to unrest in the country's volatile oil-producing south.

[visit website]