Wednesday, January 18 2006 09:31 Hrs (IST) - World Time -

New York: Oil prices raced past 65 dollars a barrel here to their highest close since late September on rising concerns over supplies from Iran and Nigeria, dealers said.

New York's main contract, light sweet crude for delivery in February, jumped 2.39 dollars to close at 66.31 dollars a barrel yesterday, the highest finish since September 29.

In London, the price of Brent North Sea crude for March delivery soared 1.72 dollars to close at 64.90 dollars a barrel, also its highest point in more than three months.

"Both Brent and New York light crude futures were higher as concern about Iran's restarted nuclear enrichment programme and the supply problems from Nigeria (intensified)," Sucden analysts said.

While the United Nations standoff with Iran will take time to unfold, attacks on oil facilities in Nigeria are a pressing concern, analysts said.

"In the very near term the Nigerian issue could generate more immediate buying pressure," Fimat analyst John Kilduff said.

"The frequency of the attacks and the apparent lack of any ability to control them puts the country's entire output at risk," he said.

Nigerian separatists yesterday warned Anglo-Dutch giant Shell and other foreign energy companies to leave the oil-rich region of Niger-Delta or face action.

Over the past week in the southern region, armed gangs have kidnapped four foreign oilmen working for Shell and sabotaged a pipeline, costing the firm over 200,000 barrels per day (bpd).