PORT HARCOURT, Nigeria -- Nigerian militants threatened on Wednesday to broaden their "oil war" to offshore oilfields and announced attacks on a crude oil pipeline in the Niger Delta and another Shell-operated facility.

A Shell facility in Bonny Island in the Niger Delta. Oil prices have rebounded by more than two dollars, recovering some recent heavy losses, as the market firmed on the fresh violence in crude producer Nigeria and rescue of US insurer AIG. [Agencies]

The Movement for the Emancipation of the Niger Delta (MEND), responsible for attacks that have cut a fifth of OPEC member Nigeria's oil output, said it would launch attacks outside Rivers state for the first time since clashes began on Saturday.

Oil traders on Wednesday began to take notice of the rise in violence and that helped push prices above $94 a barrel in early trading. The market has fallen sharply this week on the impact of the credit crisis on the global economy.

The heaviest fighting between militants and security forces in more than two years has spread to about 10 villages in Rivers state, home to oil city Port Harcourt. Some private security sources estimate dozens have died.

"After Rivers, the hurricane will be heading to the neighbouring states in the Niger Delta," MEND said in an e-mailed statement.

Experts believe the clashes could continue for weeks as the military tries to capture or kill top militant leaders and regain control of the region's oil resources.

"The fight is over control of oil resources and the right to tap those resources," said Antony Goldman, an analyst at London-based risk consultancy PM Consulting.

Militants have bombed pipelines, platforms, gas plants and oilfields, halting up to 150,000 barrels per day (bpd) of oil production in the past five days, said an official with state oil firm NNPC.

The world's eighth largest oil exporter is currently pumping around 1.95 million bpd.