Oil higher in Asian trade on Nigeria unrest

Oil prices moved higher in Asian trade today amid the threat of a production shutdown in Nigeria, Africa's biggest crude producer.

New York's main contract, West Texas Intermediate crude for delivery in February gained 44 cents to $99.54 in morning trade.

Brent North Sea crude for February was up four cents at $111.30

"Geopolitical supply side issues continue to be the key bullish factor affecting oil prices," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.

"Besides Iran, the more immediate concern that could affect supply are the strikes in Nigeria"

Nigerian oil workers vowed yesterday to start shutting down production this weekend as a national strike entered its fifth day.

High level talks between labour leaders and President Goodluck Johnathan made progress toward a deal but were not enough to call off the industrial action.

Both sides are scheduled to meet again tomorrow -- with oil workers planning to shut down production at midnight of that day, if no resolution is reached.

The unrest in the country started Monday amid protests against the government's January 1 scrapping of fuel subsidies, which caused petrol prices to more than double, sparking widespread anger.

Nigeria produces more than two million barrels per day and is a key supplier of crude to the United States and European Union.