Oil retreats as Shell says it could restart production at Nigerian oil field

LONDON – Oil prices fell, retracing this week’s strong gains, after Shell said it could soon restart production at its 120,000 bpd EA oil field in Nigeria, but falls were limited by lingering concern about US gasoline stocks.

At 11.36 am, May-dated Brent contracts were down 70 cents at 67.14 usd, after settling 74 cents higher at 67.84 usd yesterday. Meanwhile May-dated US light crude futures were down 80 cents at 67.17 usd.

Traders said comments from Shell’s exploration chief Malcolm Brinded that production at the EA offshore field, shut in since February because of attacks by militants, could restart soon was prompting some selling.

‘Any headline like that will see the market move a bit lower,’ said Lee Elliot, a broker at Man Financial. ‘Also, US-based funds are selling. I think it is a bit of profit-taking before the weekend.’

AFX