June 19 (Bloomberg) -- Crude oil was little changed at a nine-month high in New York amid concern that a strike will curb fuel shipments from Nigeria, Africa's biggest oil producer.

The strike will start tomorrow, according to John Odah, general secretary of the Nigeria Labour Congress. Union representatives demanded that the government rescind a motor-fuel price increase implemented last month.

The strike ``threatens a total shutdown of the Nigerian oil industry,'' said Phil Flynn, vice president of risk management at Alaron Trading Corp. in Chicago. ``The industry is already operating at a reduced rate. This focuses attention on all of the risks to supply that are out there.''

Crude oil for July delivery rose 1 cent to settle at $69.10 a barrel at 2:51 p.m. on the New York Mercantile Exchange, the highest closing price since Sept. 1. Prices are little changed from a year ago.

Brent crude oil for August settlement fell 34 cents, or 0.5 percent, to close at $71.84 a barrel on the London-based ICE Futures exchange.

Domestic fuel prices were raised and Nigeria's value-added tax was doubled in the final days of the administration of President Olusegun Obasanjo, who handed over power on May 29 to Umaru Yar'Adua.

Government Pledges

The new government has pledged to cut the increase by half, reducing prices to 70 naira (55 cents) a liter, said Peter Akpatason, the president of the National Union of Petroleum & Natural Gas Workers.

``We are insisting that they must reduce to 65 naira,'' Akpatason said in an interview from Abuja.

Union members also want a repeal of an increase in value- added tax, which jumped to 10 percent from 5 percent last month. A final demand includes canceling last month's sale of two oil refineries.

``The new government has been conciliatory with both the militants and the unions and has met with, at best, mixed success,'' Flynn said. ``They released a rebel commander but the kidnappings haven't stopped.''

Mujahid Dokubu Asari, a Nigerian militia leader arrested on treason charges, was freed by the country's high court on health grounds, the Movement for the Emancipation of the Niger Delta said June 14. The release of Asari was one of the conditions set by the group to end attacks that have crippled Africa's biggest oil industry for more than a year.

Eni SpA declared force majeure after one of its stations in Nigeria was attacked by militants June 17. Force majeure is a legal clause meaning deliveries are suspended because of conditions beyond the company's control.

Nigeria produces low-sulfur, or sweet, crude oil, prized by U.S. refiners because of the proportion of high-value gasoline it yields. The African country was the fourth-biggest source of U.S. oil imports during the first four months of the year, according to the U.S. Energy Department.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

Last Updated: June 19, 2007 15:47 EDT