UPDATE 11-Oil rises over 3 percent on Nigeria attacks

* Nigerian militants say attack Shell oil platform

* IEA cuts sharply medium-term forecast of oil demand

* EIA revises U.S. April oil demand higher (Updates prices at settlement)

By Edward McAllister

NEW YORK, June 29 (Reuters) - Oil prices rose more than 3 percent on Monday, lifted by word of fresh rebel attacks on oil installations in Nigeria and gains in equity markets.

U.S. crude CLc1 settled up $2.33 at $71.47. London Brent crude LCOc1 settled up $2.07 at $70.99.

Nigeria's main militant group said its fighters had attacked an oil facility belonging to Royal Dutch Shell (RDSa.L) in the Niger Delta on Monday, days after President Umaru Yar'Adua proposed an amnesty. [ID:nLT318433]

Further support came as signs of life in overseas markets renewed investor optimism about the prospects for an economic recover. [.N]

"Anytime that we see the Dow Jones higher, the funds take that as a sign that the economy is going to strengthen and that oil demand will strengthen along with that," said Peter Beutel, president of Cameron Hanover in New Canaan, Connecticut.

Signs of a turnaround in the global economy have helped lift crude prices up from below $40 a barrel in February. The economic crisis has battered global fuel demand, knocking crude off record highs set above $147 a barrel last year.

The U.S. Energy Information Administration revised up its April U.S. oil demand estimate by 1.18 percent, though the data showed consumption was still 6.56 percent lower than a year ago. [ID:nN29382698]

The data came after an International Energy Agency mid-term oil forecast which said that there was a chance of an extended economic contraction and that the threat of a supply crunch had only receded, not gone away. [ID:nLT674055]

No. 2 oil consumer China, meanwhile, unexpectedly increased gasoline and diesel prices on Monday by nearly 9 percent and 10 percent respectively. [ID:nPEK4425]

NIGERIA

Crude was bolstered by militant activity in Nigeria as fighters forced production outages in the West African country.

Ongoing attacks in the OPEC nation have shut about 1.26 million bpd of oil production, with current output now around 1.74 million bpd, according to government figures.