Oil prices rose this evening as supply disruptions in Nigeria and escalating tensions between Israel and Iran outweighed Saudi Arabia's pledge to raise output and keep markets well-supplied. US crude rose $2.52 to $137.92, while London Brent crude was $2.17 higher at $136.91.
A ceasefire by rebels halting attacks on facilities in the Niger delta barely tempered the rise after two new attacks over the past week knocked out another chunk of Nigerian output. Some 340,000 barrels per day of Nigerian output was halted by attacks last week.
Oil prices hit a record near $140 a barrel last week and have doubled from a year ago, stoking inflation and triggering protests worldwide. A meeting of top energy policy makers in Jeddah at the weekend offered little hope for a quick fix. Top exporter Saudi Arabia confirmed it will lift production for a second time to 9.7 million bpd in July, its highest level of production in more than 30 years, and pledged on Sunday to pump even more if the market demanded it.
But analysts said the short-term supply situation was still very tight, putting tensions between Iran and Israel back in focus. Iran said it would give a 'devastating' response to any attack on the country, the latest in a war of words centred on Tehran's nuclear programme.
