* Nigeria militants say blow up two oil, gas pipelines
* Fuel production cut after Sunoco refinery fire
* Dollar weakens; European, U.S. stock markets rise
(Updates details, prices)
NEW YORK, May 18 (Reuters) - Oil prices rose 4.6 percent on
Monday as violence in Africa's top crude exporter Nigeria and a
fire at a key U.S. East Coast refinery revived concern about
supplies.
Strength on Wall Street and weakness in the U.S. dollar
Monday encouraged buying on the oil market, dealers said.
U.S. crude <CLc1> for June rose $2.58 to $58.92 by 1720
GMT, while London Brent <LCOc1> for July rose $2.48 to $58.46.
The gains came after Nigerian militants said they had blown
up two oil and gas pipelines in the Niger Delta and would
blockade waterways in the region in an effort to disrupt energy
exports from the OPEC country. []
Unrest in the world's 12th largest oil producer routinely
impacts output levels.
In the United States, an explosion rocked Sunoco's oil
refinery in Marcus Hook, Pennsylvania, sparking off a fire and
disrupting production from the 178,000-barrel-per-day plant
heading into peak summer driving season. []
"The Nigerian stories probably would not have much of an
impact on their own, but combined with the refinery glitches
are contributing to a positive start to the week," said Tony
Machacek, a broker at Bache Commodities.
Machacek added that a weaker U.S. dollar and early gains in
equity markets was adding to oil's gains.
U.S. stocks rose on light volume on Monday as a
better-than-expected quarterly profit and upbeat outlook from
Lowe's Cos Inc <LOW.N>, the No. 2 U.S. home improvement
retailer, fueled hopes the economic slump was easing and
spending was stabilizing. []
OPEC MEETING LOOMS
Oil has risen from a near five-year low of $32.40 reached
in December as the market has tracked a rally in equities
underpinned by hopes of an economic recovery.
European stocks rose and U.S. equities got off to to a
stronger start Monday. [] The dollar weakened, boosting the
appeal of oil and other commodities to some investors.
Besides firmer equities, supply curbs by OPEC have also
bolstered prices. The group, which has agreed to cut 4.2
million barrels per day (bpd) of output since September, meets
on May 28 to decide production policy.
So far, comments from ministers from the Organization of
the Petroleum Exporting Countries suggest the group is unlikely
to reduce supply further. But prices are still lower than some
in the group would like.
Iranian President Mahmoud Ahmadinejad said on Monday that
OPEC's second largest oil exporter considered an oil price of
$80 to $90 barrel as "suitable," the semi-official Mehr news
agency reported.
The June U.S. crude contract expires Tuesday and dealers
said trading may be more volatile than usual as a result.
(Additional reporting by Fayen Wong in Perth and Richard
Valdmanis in New York; Editing by Christian Wiessner)
