LONDON, Feb 15: Oil prices topped $96 on Friday as global supply concerns were stoked by persistent fears over problems in Nigeria and Venezuela, traders said.

Those concerns more than offset a gloomy warning from US Federal Reserve chairman Ben Bernanke, who predicted “a period of sluggish growth” ahead for the energy-hungry US economy.

New York’s main contract, light sweet crude for delivery in March, was up 92 cents to $96.38 a barrel.

Brent North Sea crude for March delivery gained 48 cents to $95.64.

“Oil prices have continued their upwards march,” said Barclays Capital analyst Kevin Norrish. “Frequent supply disruptions ... and a broader sense of supply insecurity brought about by tense relationships between producers and consumers are factors explaining the remarkable strength in oil prices,” he added.

Crude futures began rising at the start of the week after Venezuelan President Hugo Chavez threatened to halt oil deliveries to the United States.

The market bounced even higher after Venezuela’s state petroleum company PDVSA suspended oil supplies to ExxonMobil in retaliation for the US energy giant’s effort to freeze billions of dollars in global PDVSA assets.

The move came after ExxonMobil, the world’s biggest energy company, secured international court orders freezing up to $12 billion in PDVSA assets.

“The ongoing saga between Venezuela and Exxon continued to support oil prices” on Friday, said Sucden analyst Nimit Khamar.

“This situation has increased the geopolitical risk premium and reminded the market that there are plenty of ongoing factors that could trigger a sharp spike higher.”

In Nigeria, meanwhile, ongoing unrest has rekindled market worries over production from Africa’s largest crude oil producer.

Instability and violence resulted in Nigeria’s oil output being slashed by a quarter in 2007.

Despite this week’s bounce higher for prices, the International Energy Agency has forecast that the world oil market could be set for a lengthy slowdown after striking a record high $100.09 at the start of January.

In Vienna on Friday, the Opec oil cartel lowered its projections for growth of oil demand this year in response to a slowdown in world economic momentum.

The Organisation of Petroleum Exporting Countries in its February report said demand would likely grow by 1.43 per cent this year rather than its previously estimated 1.52 per cent.—AFP