Oil prices ease as Nigeria heads off strike

Oil prices eased today as Nigeria's president moved to avert a general strike and dealers took profits from a 15 per cent, two…

Oil prices eased today as Nigeria's president moved to avert a general strike and dealers took profits from a 15 per cent, two-week bull run.

London Brent futures were down 19 cents at $28.70 a barrel, while New York light crude was off 24 cents at $30.23 a barrel in electronic trade.

Prices fell as Nigerian President Olusegun Obasanjo began consultations to try to head off a general strike threatened from Thursday over a rise in fuel prices.

A Nigerian general strike in June lasted over a week but did not halt oil exports.

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Oil prices have jumped around $3.50 a barrel after the OPEC cartel's surprise 3.5 per cent production cut on September 24th caught speculative hedge funds short and forced them to buy back positions.

OPEC's supply cuts will kick in from November 1st, just as northern hemisphere refineries increase crude use to make winter heating supplies.

Recent gains have pushed OPEC's crude oil basket above the cartel's upper price band range of $28 per barrel, with the basket last valued at $28.19.

Under OPEC rules, the group could raise output if the basket price stays above $28 for 20 working days, but analysts say OPEC is too concerned about the threat of supplies swelling to raise its own output soon.