WTI gains on Saudi disappointment, Nigeria worries

Crude oil prices were up on Monday on disappointment that Saudi Arabia did not pledge to hike production by more than it did.

The Saudis said they would increase production by 200,000 barrels per day beginning in July while continuing to argue that lack of supply is not the reason for rising oil prices.

Instead, they continue to put the blame for rising prices on speculators and on the generally weak US dollar.

Also sending prices higher were worries about Nigerian production, even though a major militant group there declared a ceasefire over the weekend.

There are fears that if the promised ceasefire does not take effect or does not last, the increase in Saudi production will not cover interruptions in Nigerian supply.

Gains were limited, however, as the dollar strengthened in relation to the euro during the session.

August contracts for West Texas Intermediate crude added $1.38 to $136.74 per barrel on the New York Mercantile Exchange while Brent crude was up 69 cents to $135.55 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline was up around a cent and a half to $3.4551 per gallon while July heating oil gained more than 2 cents to $3.7975 per gallon.

At-the-pump prices for regular unleaded gasoline, on the other hand, dropped 0.1 cent to $4.072 per gallon on average overnight.