Crude oil prices retreat slightly

Crude oil prices were lower in New York near the end of floor trade on the New York Mercantile Exchange on Monday, but for most of the morning they traded higher on refinery problems and on production news from the Organization of Petroleum Exporting Countries.

OPEC is reported to have said again that it will not increase production before it meets again at the beginning of September even though Saudi Arabia announced that it hiked its production by 300,000 barrels per day earlier in the month.

Also tending to push prices higher early was a report that part of New Mexico refinery was shut down for repairs just as the unit was being brought back online from an earlier shutdown.

Still, by near the end of the day June contracts for West Texas Intermediate crude was down 79 cents to $125.50 per barrel in New York while Brent crude for July delivery was 49 cents lower to $124.50 per barrel on the ICE Futures Europe exchange in London.

Nymex June gasoline added 1 cent higher to $3.23 per gallon while July heating oil jumped 8 cents to $3.71 per gallon and July natural gas gained 3 cents to $11.29 per million British thermal units.

Meanwhile at the pump in the US as the official beginning of the summer driving season approaches with the upcoming holiday weekend, prices for gasoline and diesel fuel rose to new highs.

Regular unleaded gasoline is now averaging $3.79 per gallon nationally while two states - Alaska and Connecticut - have state average prices just above $4 per gallon.

Some regions of California have been paying above $4 per gallon for awhile now, even though the statewide average is now at $3.96 per gallon.

Diesel fuel now sells at a national average of $4.52 per gallon.