LONDON, Sept 30 (AFP) - Oil prices resumed their march towards 50 dollars in New York on Thursday even as peace talks were set to resume in major producer Nigeria and following an unexpected rise in US crude inventories.
The price of light sweet crude for November delivery rose 17 cents from Wednesday's closing price to 49.68 dollars a barrel in pre-opening electronic trading on the New York Mercantile Exchange.
The contract closed lower Wednesday for the first time in nearly two weeks, dropping 39 cents to 49.51 dollars a barrel.
In London the price of reference Brent North Sea crude oil for delivery in November rose 36 cents to 46.44 dollars in early afternoon deals.
"The market is still very strong," Prudential Bache trader Tony Machacek said. "The overall supply/demand balance is still very, very tight."
Prices had been falling since Wednesday after the start of peace talks between Abuja authorities and the leader of a separatist movement fighting for the control of Nigeria's oil wealth. Talks were set to resume Thursday, according to rebel leader Mujahid Abubakar Dokubo Asari.
Prices dropped also after US crude oil inventories showed a surprise increase a week after tumbling to their lowest levels since February.
The Department of Energy said crude oil reserves rose 3.4 million barrels in the week to September 24 to 272.9 million barrels, a week after a spectacular drop of 9.1 million barrels due to Hurricane Ivan.
Oil prices hit an all-time peak of 46.80 dollars in London on Tuesday and 50.47 dollars in New York after Nigerian rebels threatened to attack international oil facilities and personnel in the Niger Delta region.