LONDON -- Crude oil futures fell below $113
in choppy trading on Thursday as the dollar strengthened, while
support came from a continuing supply disruption in Nigeria.
U.S. crude dropped by 65 cents to $112.81 a barrel at 1350
GMT. It fell to as low as $112.45, the lowest since April 15,
after rising to $115.23 earlier. London's Brent was 46 cents
down at $110.90.
ICE gas oil futures were leading the oil market lower,
falling 1.16 percent.
On Wednesday U.S. crude fell about $2 after government data
showed a large increase in crude oil inventories.
The dollar rose to a one-month high against the euro and was
heading toward a two-month high against the yen. The U.S.
currency recovered from earlier losses suffered after the
Federal Reserve kept alive the possibility that interest rate
cuts may continue.
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Support came from Nigeria and the fall in OPEC's output for
April.
All of Exxon Mobil's 800,000 bpd output in Nigeria remained
shut in while talks with striking unions continued.
"Broader supply side developments remain price supportive,"
Barclays Capital said in its research note.
"With substantial volumes currently shut-in, Nigerian output
will be severely affected unless the stand off comes quickly to
an end."
Exxon Mobil and Royal Dutch Shell said their production
remain shut, denying market rumours that they had restarted some
output.
Shell said earlier this week that 164,000 bpd of its output
had been lost due to recent attacks.
OPEC oil supply fell in April to its lowest this year as the
strike cut Nigerian output and top OPEC exporters Saudi Arabia
and Iran trimmed production, a Reuters survey showed on
Thursday.
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