Oil prices edged lower this morning, but both benchmarks held onto most of the sharp gains made yesterday amid supply fears from Nigeria.
A nationwide strike in Nigeria stoked supply jitters at a time when the United States is facing a gasoline shortfall ahead of the peak demand period of its summer driving season. Nigerian crude is ideal for producing gasoline.
Brent prices struck $72.25 yesterday, the highest level in ten months.
At 9.31am in London, benchmark Brent crude contracts for August delivery were down 41 cents at $71.77 a barrel. Earlier, Brent had risen to $72.20, just 5 cents off its ten month high.
New York crude contracts for July delivery, which expires tomorrow, were down 37 cents at $68.72 a barrel.
"The emphasis is likely to shift to the release of data tomorrow with poor data set to push the current rally further," said Bank of Ireland analyst Paul Harris. "Today will see prices steady with a $75 to $68.80 range probable."
Militant attacks in Nigeria added to output worries. Gunmen occupied an oil pipeline centre in Nigeria, shutting in another 82,000 bpd, officials said yesterday.