* Oil hits record over $147 a barrel on Iran tensions
* Potential supply disruption from Nigeria, Brazil
* Fannie Mae and Freddie Mac troubles hit global markets
(Updates throughout)
By Rebekah Kebede
NEW YORK, July 11 (Reuters) - Oil prices jumped $5 to a
record high above $147 a barrel on Friday amid growing worries
about threats to supplies from Iran and Nigeria and a strike by
Brazilian oil workers next week.
Analysts said oil's rally could run further if problems
with U.S. mortgage companies Fannie Mae <FNM.N> and Freddie Mac
<FRE.N> feed into the commodities boom by reducing the chances
of an interest rate hike by the U.S. Federal Reserve.
[]
The troubles with the mortgage giants -- which control $5
trillion in debt -- helped pare crude's gains after it hit new
highs as dealers focused on U.S. economic turmoil that has
already slowed oil consumption in the world's top energy user.
U.S. crude <CLc1> settled at $145.08 a barrel, up $3.43,
after climbing as high as $147.27 earlier in the day and adding
to gains of $5.60 from Thursday. London Brent crude <LCOc1>
settled at $144.49 a barrel, up $2.46.
"I'm seeing profit-taking here after the run-up to a new
record, but we are going into a weekend and with all these
things being reported on Iran, you wouldn't want to go short,"
said Daniel Flynn, an analyst at Alaron Trading.
In addition, Iraq's Defense Ministry said on Friday that it
had no knowledge of Israeli air force drills in its airspace,
contrary to a media report carried on the Jerusalem Post
website that sparked crude early Friday. An Israeli security
source also said the report was wrong. []
"As martial rumors are denied, participants are reverting
their gaze on the deteriorating global economy," said Mike
Fitzpatrick, vice president at MF Global in New York.
Missile tests this week by Iran, against a backdrop of
rising tensions with Israel and the United States, has left the
oil markets worried about a potential supply disruption from
the world's No. 4 exporter.
Iran has threatened to strike back at Tel Aviv and U.S.
interests in a key oil shipping route if it is attacked over
its nuclear program, which Israel and the West fear is aimed at
making weapons.
Support also came from supply threats in Nigeria and
Brazil. The main militant group in OPEC nation Nigeria's
oil-producing region said it was abandoning a cease-fire to
protest against a British offer to help tackle lawlessness.
Workers at Brazil's Petrobras <PETR4.SA><PBR.N> plan to
launch a five-day strike on Monday that would affect all 42
Campos basin offshore platforms, which pump than 80 percent of
the nation's 1.8 million bpd of output. []
Oil prices have risen seven-fold since 2002 amid surging
demand from China and other emerging markets, and jumped 50
percent this year alone, battering the economies of consumer
nation's already hit hard by the global credit crunch.
Concern in the United States that Fannie Mae and Freddie
Mac could run short of capital added to inflation worries.
Analysts said the U.S. Federal Reserve could be hindered in any
efforts to raise interest rates by the problems.
"Mounting anxiety about the health of Fannie and Fred now
effectively guarantees the Fed will remain on the sidelines for
the next few months -- whatever happens to inflation," said
John Kemp, commodities analyst at RBS Sempra in London.
Investors also have flocked to oil and other commodities
this year as a hedge against inflation and a weak dollar.
(Additional reporting by Richard Valdmanis in Portland, Maine,
Santosh Menon in London and Felicia Loo in Singapore; Editing
by Matthew Robinson and Christian Wiessner)
