Crude oil rises on Middle East worries

Crude oil prices were higher Friday after the Israeli military carried out exercises in the Mediterranean Sea that some interpreted as a rehearsal for an attack on Iranian nuclear sites.

In addition, prices were pushed up by a declaration from Royal Dutch Shell (LSE: RDSA, RDSB; LSE: RDS.A, RDS.B) that a recent attack on one of its oil fields in Nigeria means it will not be able to meet some of its contracts and by a decision from workers that a strike against Chevron’s (NYSE: CVX) Nigerian operations will begin on Monday.

There were also doubts that China’s move to raise fuel prices would cut demand there and even speculation that the increased prices could increase demand.

July contracts for West Texas Intermediate crude, which expired at the end of the trading day, added $2.69 to $134.62 per barrel while the more heavily traded August contracts added $2.76 to $135.36 per barrel.

The price of WTI lost 24 cents from last Friday’s close.

Brent crude for August delivery gained $1.98 to $133.98 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline added 9 cents to $3.43 per gallon while August heating oil was up almost 6 cents to $3.77 per gallon and August natural gas gained 24 cents to $13.23 per million British thermal units.

At-the-pump prices in the United States for regular unleaded gasoline added 0.2 cent overnight to an average $4.075 per gallon but remained below the record $4.08 per gallon set on Monday.

Diesel at the pump, however, dropped 0.5 cent overnight to $4.786 per gallon.