Oil Falls More Than $1 on Profit-Taking

Oil fell more than $1 to $67 on Tuesday on profit taking after concerns about Nigerian supplies.

Oil fell more than $1 to $67 on Tuesday on profit taking after concerns about Nigerian supplies following elections sent prices higher.

London Brent crude , currently seen as more representative of global oil prices than U.S. crude, fell $1.27 to $66.88 at 1640 GMT, after jumping $1.66 on Monday. U.S. crude gave up $1.69 to $64.20.

"We're seeing retracement of strong gains yesterday," said Antoine Halff, head of energy research at Fimat USA.

Oil jumped on Monday after Nigeria's ruling party's candidate Umaru Yar' Adua was declared the winner of the presidential poll. Observers and opposition groups said the result was manipulated through violence and rigging.

Analysts raised concerns over the potential for more violence against the oil industry, which has already curbed about 20 percent of the OPEC nation's total output.

"The fear of renewed supply disruption is prompting traders to buy first and ask questions later," said Olivier Jakob of Swiss-based oil consultancy Petromatrix.

U.S. prices have been pressured by a glut of crude in the Midwest, creating an unusual discount to Brent oil. A string of refinery problems in the region could lower demand and help build stocks further. [ID: nN24406109]

Full production at BP's 420,000 barrels per day Whiting, Indiana, refinery may not resume until mide-June. Output has been cut to about 200,000 bpd for operational reasons, the company said in a statement on Tuesday. [ID:nN24418162]

U.S. gasoline inventories are expected to draw by a small amount -- the 11th week that stocks have fallen -- in data due on Wednesday, a preliminary Reuters poll of industry analysts showed on Monday. [EIA/S]

The dispute between Iran and the West over its nuclear program limited oil's losses.

Iran's president told Reuters on Monday the OPEC producer would not halt its atomic activities under any circumstances. (Additional reporting by Janet McBride in London and Luke Pachymuthu in Singapore)