(Corrects paragraph 10 to say Japan is the world's No.3, not
No.2, energy consumer)
* Oil falls towards $68/bbl as Nigeria supply threat eases
* Japan May industrial output jumps 5.9 pct mth/mth
* Obama could mull 2nd US stimulus if needed -adviser
(Releads, updates prices, analyst comments)
By Fayen Wong
PERTH, June 29 (Reuters) - Oil fell towards $68 a barrel on
Monday as the easing of tensions in energy-rich Nigeria
prompted some investors to take profit.
Four Nigeria militant factions accepted in principle an
amnesty offer from the country's president, raising hopes that
Africa's top oil producer would halt a battle with rebels in
its energy-rich Niger Delta that has shut in around 1 million
barrels per day of output. []
U.S. crude for August delivery <CLc1> fell 56 cents to
$68.60 a barrel by 0235 GMT. The contract fell $1.07 to settle
at $69.16 a barrel on Friday.
London Brent crude <LCOc1> was down 62 cents at $68.30.
Pipeline bombings, attacks on oil and gas installations and
kidnapping of industry workers over the past three years have
prevented Nigeria from pumping much above two-third of its
installed oil output capacity of 3 million barrels per day.
"Tensions in Nigeria seem to have eased over the weekend so
some of that supply risk premium is giving way this morning,"
said Toby Hassall, an analyst at Commodities Warrants
Australia.
"Beyond that, the market will be closely eyeing the raft of
economic data due later this week, which will bring investors'
focus back to fundamentals."
There is a heavy calendar of economic data for the week,
including China's Purchasing Managers Index on Wednesday, U.S.
Consumer confidence on Tuesday, and a U.S. jobs report and
manufacturing data on Thursday. []
For investors, the slew of U.S. economic indicators could
be the make-or-break factors in determining whether the oil
market rally, which has lifted prices more than 50 percent this
year on hopes of economic recovery, has any legs.
In the first big number for the week, industrial output
from the world's No. 3 energy consumer Japan jumped 5.9 percent
in May, the third straight month of increase after a big slump.
[]
This adds to positive economic data on Friday. U.S.
consumer spending in May rose for the first time since February
and savings hit a record high as federal stimulus measures
boosted incomes. []
President Barack Obama could discuss a second stimulus
package to boost the economy if needed, but at the moment no
more new money looked necessary, a top White House adviser said
on Sunday. []
Crude oil speculators on the New York Mercantile Exchange
hiked their net long positions in the week to June 23,
according to data from the Commodity Futures Trading Commission
released on Friday. []
(Reporting by Fayen Wong)
