Oil prices rose this morning, building on strong gains won a day earlier in the wake of robust US manufacturing activity and fresh unrest in Nigeria's key oil-producing region.
New York's main futures contract, light sweet crude for delivery in March, was up 27 cents at $74.70 a barrel, while Brent North Sea crude for delivery in March gained 29 cents to $73.40.
Crude futures had closed up over $1.50 higher yesterday after a report from the Institute of Supply Management showed a brisk pace of manufacturing activity in the United States - the world's biggest energy consumer.
The ISM said its manufacturing index, also known as the purchasing managers index, climbed to 58.4% in January, the best number since 2004 and well ahead of the 50% that indicates growth.
Renewed violence in Nigeria also fuelled prices. Anglo-Dutch oil group Shell yesterday said it was forced to cut output after a key supply pipeline was sabotaged hours after militants announced the end of a ceasefire in southern Nigeria.
