Fears over Iran and Nigeria keep oil traders nervous

OIL prices edged back toward record highs yesterday as the threat of war on Iran and the disruption of supplies from Nigeria kept international traders nervous.

Nerves were frayed further when US energy giant ExxonMobil announced it had pulled out non-essential staff from the Nigeria's largest oil export terminal amid growing fears dissidents were liable to attack the site.

Meanwhile, Iran has refused to rule out the use of oil as a weapon in the worsening stand-off over the Islamic republic's disputed nuclear quest.