Oil prices rose again this evening as Anglo-Dutch energy giant Royal Dutch Shell cut output in Nigeria after attacks sabotaged at least one of its pipelines supplying crude.
Brent North Sea crude climbed 42 cents to $124.94 a barrel, while US crude advanced by 36 cents to $123.62.
Prices had earlier fallen after fresh signs of slower demand in top fuel consumer the US. The US Transportation Department said the number of miles driven on US highways in May fell a record 3.7% from a year earlier.
Earlier, rebels from the Movement for the Emancipation of the Niger Delta claimed that 'heavily armed' MEND fighters had attacked two pipelines in Nigeria's main oil producing region in the southern Rivers state. A Shell spokesman confirmed damage to the Kula pipeline but was unable to confirm claims of an attack to a second pipeline.
Oil prices struck record highs above $147 dollars a barrel on July 11 but have since fallen on concerns that the global economic slowdown will hit energy demand.
