LONDON, Feb 7: Oil prices crept higher on Thursday amid fresh supply woes as energy giant Shell said it would not be able to honour export contracts from Nigeria owing to unrest in Africa’s biggest exporter of crude.

Prices had declined on Wednesday after the US government reported another rise in crude oil inventories amid mounting worries that demand for energy would fall owing to the weak US economy, traders said.

On Thursday New York’s main contract, light sweet crude for delivery in March, rose 71 cents to 87.85 dollars per barrel.

Brent North Sea crude for March delivery gained 68 cents to 88.46 dollars.—AFP