Oil holds above $65 on supply fears

Brent crude held above $65 a barrel this morning as renewed supply disruption from Africa compounded worries about inadequate…

Brent crude held above $65 a barrel this morning as renewed supply disruption from Africa compounded worries about inadequate gasoline stock levels in the United States.

London Brent crude for the June contract rose one cent to $65.80 a barrel by early this morning.

It rose 59 cents yesterday after a fire shut down a Congolese oilfield, and more violence in Nigeria raised supply risks there.

US light crude slipped 5 cents to $61.76.

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On top of production concerns across the Atlantic, US traders continue to fret over the state of gasoline stocks, which rose just 400,000 barrels last week, ending a 12-week decline that had dragged them far below seasonal norms.

At 89 per cent of capacity, refinery operations remain below the 90 per cent level that analysts say would give more comfort to the market before summer travel begins at the end of May.

Refinery runs have been curbed by snags on top of regular retooling works, leading to a heavy crude build as a result, despite disruptions in African supplies.

In the most recent violence in the Niger Delta, rebels took four American oil workers hostage on Wednesday. On Tuesday they blew up three oil pipelines belonging to Italy's Eni, halting daily output of 98,000 barrels per day.

Adding to those concerns, Total shut its Nkossa field, which pumps 60,000 to 70,000 barrels of oil daily in Congo Republic, after a fire hit the platform.