Oil rises, buoyed by supply risks, speculators

By Jane Merriman

LONDON (Reuters) - Oil advanced for a fourth day on Monday, supported by an escalating row between OPEC member Venezuela and oil major Exxon Mobil.

The quarrel between Venezuela and Exxon, plus fears of new supply disruptions from Nigeria, has helped oil bounce back from this year's low of $86.11. But worries about a slowdown in top oil consumer the United States could hamper a return to record highs of $100 a barrel struck in early January.

U.S. crude was up 61 cents at $96.11 a barrel by 1812 GMT. On Friday it had closed 4 cents higher at $95.50, after touching a one-month high of $96.67.

London Brent crude was up 30 cents at $94.93. Trading was relatively slow because of a holiday in the United States.

"Oil prices are remaining at firm levels, buttressed by perceived supply side risks," David Moore, a resource analyst at the Commonwealth Bank of Australia, said in a research note.

There is also evidence of investors moving back into oil, which could point to further price strength.

Speculators on the New York Mercantile Exchange, for example, increased net long positions last week, according to data from the Commodity Futures Trading Commission released on Friday.

Net crude long positions increased to 39,922 in the week ending Feb. 12, up from to 27,448 in the previous week.