* Oil rises to over $137 on end of Nigerian cease-fire
* Iran holds second day of missile tests
* Brazilian oil workers threaten strike
(Updates throughout, changes dateline from LONDON)
NEW YORK, July 10 (Reuters) - Oil rose to over $137 a
barrel on Thursday on Nigeria and Brazil output threats and as
additional missile tests by OPEC member Iran escalated tensions
with the West.
Further support came from the weak dollar, which fell on
renewed credit worries after capital concerns dragged down
shares in major mortgage finance sources Fannie Mae and Freddie
Mac. []
U.S. crude <CLc1> rose $1.51 to $137.56 a barrel by 1311
EDT (1711 GMT). London Brent crude <LCOc1> traded up $1.53 at
$138.11 a barrel.
The Movement for the Emancipation of the Niger Delta
(MEND), the main militant group in Nigeria's oil-producing
Niger Delta, said it was abandoning a cease-fire in protest at
a British offer to help tackle lawlessness in the region,
raising concern of further disruptions to the OPEC nation's
exporters.
"The cease-fire in Nigeria is ending on the (July) 12th and
that's creating some jitters as far as supply is concerned,"
said Rob Kurzatkowski, futures analyst with optionsXpress.
Rebel attacks on oil infrastructure in the world's No. 8
exporter have helped push crude to record highs over $145 this
month, adding to a 40 percent rise in prices this year.
Concerns that tensions between OPEC member Iran and the
West over Tehran's nuclear program could lead to an oil supply
disruption have added to bullish sentiment.
Iran tested more missiles in the Gulf on Thursday, state
media said, and the United States reminded Tehran that it was
ready to defend its allies. []
Workers at Brazil's Petrobras <PETR4.SA><PBR.N> threatened
to launch a five-day strike for next week that would affect all
42 Campos basin offshore platforms, which account for more than
80 percent of Brazil's output of around 1.8 million barrels per
day. []
Further support came as the dollar slipped against other
currencies. [] Investors have flocked to oil and
other commodities this year as a hedge against rising inflation
and the weak greenback.
High fuel costs have battered consumer economies this year,
driving down demand and causing global fuel protests, after
surging growth in demand from emerging economies like China
sparked a 6-year rally in oil prices.
The International Energy Agency on Thursday forecast
pressure on oil markets could ease next year as demand growth
slows, cutting the need for OPEC crude. []
"We do see the potential for a build in spare capacity in
2009, that should help to improve the situation," said Lawrence
Eagles of the IEA, adding a pledge from OPEC kingpin Saudi
Arabia to increase output this year could help provide more of
a cushion for the market.
(Reporting by Matthew Robinson, Robert Gibbons, and Gene
Ramos in New York, Jane Merriman and Barbara Lewis in London
and Felcia Loo in Singapore; Editing by Christian Wiessner)
