Brent oil rises above $107 on Nigerian supply cut

LONDON: Brent crude oil edged higher above $107 per barrel on Wednesday as disruptions in supply from Nigeria and Libya supported prices, while promising data from top consumer the United States also boosted investor sentiment.

U.S. crude rose more, moving back to near $100 a barrel after the U.S. Energy Information Administration reported the eighth straight weekly draw in oil stocks at the contract's delivery point in Cushing, Oklahoma.

That 1.3 million barrel draw at Cushing was larger than reported by industry group the American Petroleum Institute on Tuesday, and overshadowed a larger-than-expected 6.6 million build in crude stocks nationally.

Brent for May delivery rose 3 cents to $107.01 by 1440 GMT, after closing up 18 cents in the previous session.

U.S. crude, known as West Texas Intermediate or WTI, climbed 63 cents to $99.82 a barrel, following Tuesday's loss of 41 cents.

But the absence of further tension between western powers and Russia, the world's second-largest oil exporter, kept a lid on prices.

While U.S. President Barack Obama warned Russia on Wednesday that the United States and its European allies were still looking at possible sanctions targeting its energy sector, these are unlikely to be introduced unless Russia goes beyond its annexation of Crimea.

"Brent is supported by lower supplies from Nigeria and the sharp drop in Libyan output, but remains in a relatively narrow range," said Abhishek Deshpande, commodities analyst at Natixis in London.

Royal Dutch Shell declared force majeure on Nigeria's Forcados crude exports on Tuesday due to a pipeline leak caused by oil theft, while Libyan output fell by about 80,000 barrels per day to around 150,000 bpd after the closure of a large oilfield.

Shell has not said when repairs would be completed but that it would reopen the export line as soon as possible.

U.S. durable goods orders rose 2.2 percent in February, topping expectations for a 1 percent rise, and boosting the outlook for the world's largest economy.

WTI could face pressure from higher oil imports in the coming days as the Houston Shipping Channel gradually reopens following an oil spill on Saturday.

The channel closure led to cuts in production at the second-largest refinery in the United States. Ships have been able to sail through the channel since Tuesday, but progress for tankers is slow, as they are required to stop at vessel inspection and decontamination stations along the channel.