Crude prices rise on Nigeria trouble

Crude oil prices were higher Monday after reports of an attack on Nigerian oil facilities by militants there, resulting in damage to a pipeline believed to be owned by Royal Dutch Shell (LSE: RDSA, RDSB; NYSE: RDS.A, RDS.B).

Also contributing to the gains was reaction to an announcement over the weekend from Iranian President Mahmoud Ahmadinejad saying that Iran now has 6,000 centrifuges capable of carrying out operations to enrich uranium, even though he said in an interview with an American television network Monday that he is open to new approaches by the US in order to end the standoff over Iran’s nuclear ambitions and that he believes oil prices are too high.

Still, gains were kept back by continuing concerns over declining demand, illustrated by an overnight drop of more than a penny in at-the-pump prices for regular unleaded gasoline in the United States, down to a national average of $3.958 per gallon.

At just before the close of floor trade on the New York Mercantile Exchange, September contracts for West Texas Intermediate crude had added $1.39 to $124.65 per barrel while Brent crude was up 41 cents to $124.93 per barrel.

At the same time, Nymex August gasoline was up nearly 2 cents to $3.05 per gallon while September heating oil was up just over a cent to $3.54 per gallon and September natural gas gained almost 6 cents to $9.14 per 1,000 cubic feet.