Oil climbs above $67 after Nigeria poll

A Nigerian election official sits at a polling station in the main city of Lagos, April 21, 2007.

LONDON (Reuters) - Brent crude oil climbed above $67 on Monday after Nigeria's presidential election drew condemnation from monitors and investors waited for fresh word on oil supplies from the world's eighth biggest exporter.

Militant attacks have shut about a fifth of Nigeria's oil production. Energy Minister Edmund Daukoru said last week he expected the country's biggest foreign operator, Royal Dutch Shell, to restart its Forcados fields in May.

"The situation in Nigeria may yet get worse before it gets any better. Amidst this turmoil, we doubt that Shell will decide to announce a resumption of oil exports anytime soon," said Edward Meir, an analyst at Man Financial Energy Group.

London's Brent crude, currently seen as a better guide to world oil prices than U.S. crude, was up 61 cents at $67.10 a barrel by 1520 GMT, building on Friday's 55 cents gain. U.S. crude was up 56 cents at $64.67.

Oil has trebled in price since the start of 2002 on strong Asia demand and global refinery constraints that have led to tightness in motor fuels. Brent has traded in a $5 range -- between $64.76 and $69.59 -- for the past four weeks.

Nigeria could provide the impetus for a move outside that range. An upsurge in violence could cut deeper into output. Increased stability could lead to the return of lost production.

QUESTION MARKS

"We need to see how the situation evolves this week with the major opposition groups," said Olivier Jakob, an analyst at Swiss-based oil consultancy Petromatrix.

Nigerian President Olusegun Obasanjo's chosen successor was proclaimed victor on Monday in the presidential poll.

But European Union observers said the election could not be considered credible, and local coalition of civil society observers called for the cancellation of the vote.

Obasanjo admitted the ballot was not perfect.

"If there is widespread popular disenchantment with the elections that raises the possibility that the violence and sabotage specifically directed against the oil industry might continue," said Mike Wittner of Calyon investment bank.

"The general view out there had been that once the elections were over and done with things would start to settle down and production would start to come back onstream."

"It raises some question marks that now challenge that assumption. It's supportive for price, for sure."

About 500,000 barrels per day of Nigerian oil output has been shut down for over a year due to attacks.

Analysts also said tight gasoline supplies in the United States ahead of the summer driving season, when motor fuel demand peaks, presented an upside risk.

An extended stretch of low production from U.S. refiners has cut stocks by 13 percent since early February, with last week's data showing a tenth consecutive weekly decline.

(additional reporting by Jane Merriman and Fayen Wong)