European shares were down in afternoon trade today, Wednesday, with banks leading the decline after quarterly results from U.S. banks Morgan Stanley and Wells Fargo disappointed investors.

* Nigerian rebels say blow up Shell wellhead in Niger Delta

Oil rose towards $71 a barrel on Friday after Nigerian rebels said they blew up a wellhead in a Royal Dutch Shell oilfield and as equity markets rallied on perceptions the global recession was easing.

Oil prices fell on Wednesday as the stronger dollar and rising U.S. product stocks outweighed supply concerns from Nigeria.

Oil prices rose for the third consecutive day on Friday, nearing $72 a barrel, as rebel attacks in Nigeria hit output from the OPEC-member country and economic optimism propelled equities markets higher.

FTSEurofirst 300 falls 1.5 percent… Banks under pressure on poor economic outlook… Miners, oils slip…

Who knew that oil, once the pariah of the western world, would have such a positive role in the Obama’ Administration. Senator Clinton couldn’t have asked for a better ally. Oil is bringing America’s strongest enemies to their knees and reminding Europe why Russia isn’t such a great neighbor after all.

Exxon Mobil Corp. (XOM) set a U.S. profit record today (Thursday) when it announced its third quarter profit topped $14.8 billion on record-high oil prices.

On the supply front, Nigeria’s president said the country’s state-owned oil company will take over operations in the Ogoni district of southern Nigeria from a Royal Dutch Shell joint venture. President Umaru Yar’Adua made the announcement after talks with French President Nicolas Sarkozy, saying that the move will “calm down” unrest among local residents.

Crude for July delivery jumped more than $5 per barrel in New York yesterday (Wednesday) to close at $136.38 per barrel on declines in U.S. supplies and refinery activity.

In the energy market Tuesday, crude for July delivery eased a bit, closing at $128.84/barrel, down $3.34. July reformulated gasoline lost 2 cents, to $3.38/gallon.