LONDON (Reuters) - Oil prices shot up more than $1 a barrel on Monday on worries about violence in Nigeria, while European shares were flat to lower and Japanese stocks fell.

Crude oil was bringing more than $61 a barrel in London, up $1.17, after militants in Nigeria, the world's eighth-largest exporter, crippled production and threatened more violence.

The New York Mercantile Exchange (NYMEX), which normally sets price direction, was closed for the U.S. Presidents Day holiday.

Royal Dutch Shell said it had suspended 455,000 barrels per day (bpd) of oil production after militants bombed a major export hub, kidnapped nine foreign contract workers and sabotaged at least two more pipelines.

The Movement for the Emancipation of the Niger Delta, behind the attacks seen linked to presidential elections in April 2007, warned of more violence and threatened to blow up oil tankers.

Rising oil prices are seen as a major threat to world financial markets as they weigh on economic and corporate earnings growth at a time when the world-leading U.S. economy is expected to slow.

The higher prices nonetheless helped European shares from sliding too far by bolstering demand for oil company stocks.

European stocks were generally weak on the day, but still close to 4-1/2 year highs.

The FTSEurofirst 300 index of leading European shares was flat and the DJ Euro STOXX 50 lost 0.19 percent. BP was up 1.37 percent and Total traded 1.11 percent higher.

Earlier in Japan, the Nikkei share average closed below 15,500 for the first time in a month, declining 1.75 percent as concerns about foreign selling weighed on shares across the board.

It finished down 275.52 points at 15,437.93, its lowest close since January 23. The broader TOPIX index finished down 2.07 percent at 1,572.11.

The dollar was mixed, slipping slightly against the euro but inching up against the yen.

"People are heavy of dollars at present and the U.S. is shut so there is some squaring of positions," said Tom , head of market economics at National Australia Bank.

The euro was up at $1.1942. The dollar gained a touch to 118.19 yen.

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