* Libya's El Feel oilfield resumes production
* Shell lifts force majeure on Forcados crude from Nigeria
* OPEC needs to pump more in second half of 2014 - IEA
(Recasts with updated prices to settlement)
By Robert Gibbons
NEW YORK, May 15 Front-month Brent crude futures
rose and went off the board on Thursday at the highest
settlement since March, while U.S. futures fell, snapping a
string of three straight higher settlements.
While concerns about the crisis in Ukraine and a tightening
global oil market continued to support oil futures and helped
June Brent finish higher, Brent for delivery in nearby months
fell on pressure from news of returning Libya supply.
OPEC-member Libya's output was at 300,000 barrels per day
(bpd) with the El Feel field at full capacity and Wafa field
back at work after protests ended, an official with the National
Oil Corporation said.
Royal Dutch Shell lifted force majeure on exports
of Forcados crude from Nigeria, adding to the pressure on oil.
Expiring Brent crude for June rose 25 cents to
settle at $110.44 a barrel, its highest settlement since
settling at $111.20 on March 3. Brent July crude fell 22
cents to settle at $109.09 a barrel.
U.S. June crude fell 87 cents to settle at $101.50 a
barrel after Wednesday's settlement at $102.37, its highest
finish since April 21. The June contract expires Tuesday.
U.S. RBOB gasoline and heating oil futures
also fell on Thursday, after three consecutive higher
"Brent has more risk from the geopolitical factors and this
week's inventory data showed ample supply in the U.S. even with
stocks down in Cushing (Oklahoma)," said Gene McGillian, analyst
at Tradition Energy in Stamford, Connecticut.
Crude oil stocks at the Cushing hub, delivery point for the
New York Mercantile Exchange's (NYMEX) U.S. crude contract, fell
592,000 barrels in the week to May 9, the U.S. Energy
Information Administration's (EIA) data released on Wednesday
But total U.S. crude inventories rose 947,000 barrels to
398.5 million barrels, as domestic production hit a 28-year high
of 8.43 million barrels, the EIA said.
The exclusion this week of pro-Moscow separatists from talks
among Ukraine's interim leaders on plans to give the eastern
regions greater autonomy cast doubt over moves to defuse the
political crisis in Central Europe.
Russian and European Union energy ministers are to meet May
19 to set a date for more talks with Ukraine to end a dispute
over gas prices and avoid a potential interruption of energy
Also highlighting supply worries, OPEC oil producers will
need to raise output in the second half of 2014 to meet global
demand as China builds its strategic reserves and stocks in
industrialized countries remain low, the International Energy
Agency said on Thursday
(Additional reporting by Christopher Johnson in London and
Keith Wallis in Singapore; Editing by Chris Reese, David
Gregorio and Tom Brown)