World oil prices diverged this evening as traders balanced expectations of rising Saudi Arabian output with news of a fresh supply outage in Nigeria, which is Africa's largest crude producer.
US crude fell 84 cents to $98.45 a barrel, but Brent North Sea crude rose 82 cents to $119.60.
New York prices slid on expectations that Saudi Arabia will pump more crude after failing last week to clinch an output boost for the 12-nation Organisation of Petroleum Exporting Countries (OPEC).
Riyadh's pushed to raise production to moderate price increases was rebuffed by Iran and its allies, who successfully lobbied to keep official output steady at 24.84 million barrels per day in a meeting last Wednesday.
Analysts said that all the indications nevertheless pointed to a hike in output by Saudi Arabia, which was worried that steady output would result in higher oil prices and harm the global economic recovery.
Meanwhile, Brent prices won support from supply problems in Nigeria, which is the world's eighth largest oil producer.
Shell in Nigeria today warned it may not be able to meet its contractual obligations for June and July on its Bonny Light crude - a type of Nigerian oil - after multiple pipeline fires and leaks blamed on sabotage.
