Nigeria worries push up oil price

Oil prices have risen above $71 a barrel as unrest in Nigeria's Niger Delta raised concerns about supply.

Royal Dutch Shell confirmed that its Forcados export terminal had been targeted by militants, but it was not clear if production had been affected.

US light, sweet crude rose was up $1.87 to $71.03 a barrel while in London Brent gained $1.78 to $70.70.

Nigeria is the world's eighth biggest oil producer but has suffered regular attacks on pipelines and platforms.

These have cost it billions of dollars in lost revenue.

Forecast down

The price of oil has risen sharply so far this year and could be poised to go higher as data suggested the worst of the recession may be over, reviving demand for oil.

But prices are still nowhere near the peak of $147 a barrel last July.

A report from the International Energy Agency (IEA), which advises 28 industrialised countries, has sharply cut its medium-term forecast for oil demand.

It has predicted that demand would grow by 0.6% - the equivalent of 540,000 barrels per day on average - between 2008 and 2014.

This was down from its previous forecast, issued in December, of demand growing million barrels per day.

Algerian Energy minister Chakib Khelil said on Monday the weakness of the US and European economies meant world oil stocks remained high.