Feb. 16, 2007, 11:46PM

Warning about Nigeria shakes the oil markets

By EDWARD HARRIS

Associated Press

LAGOS, NIGERIA — The U.S. consulate warned Friday that Nigerian militants may be planning to expand their activities beyond the country's restive oil-producing southern regions.

Crude prices in New York rose more than $1 to settle above $59 a barrel, in part because of worries over the consulate's statement.

The warning by the U.S., which receives more than 10 percent of its crude imports from Nigeria, said an unnamed militant group is "reportedly planning to escalate its activities in regions beyond its previous primary target areas" in the southern Niger Delta region where Nigeria's oil is pumped.

"Possible targets could include expatriate personnel, Western businesses or facilities and locales visited by tourists and foreigners in other regions of Nigeria," the Lagos-based consulate said in a statement.

It gave no details on any impending attacks and did not specify the potential militant "activities."

The main militant group in the Niger Delta did not immediately answer a request for comment.

On Friday at the New York Mercantile Exchange, light, sweet crude for March delivery rose $1.40 to settle at $59.39 a barrel after dipping as low as $57.59 earlier in the session.

Besides the Nigeria warning, Citigroup Futures Research energy analyst Tim Evans said traders were taking a second look at natural gas inventory numbers released Thursday.

Last week's withdrawal of 259 billion cubic feet from storage was short of some analysts' expectations, but it was the biggest since 1997, he said.

Natural gas prices rose 21.1 cents to $7.503 per million British thermal units, and heating oil prices rose 4.63 cents to $1.6734 a gallon.

Gasoline futures rose 4.81 cents to $1.6453 per gallon.

Brent crude rose $1.35 to $58.95 in London.