Oil prices above US$138 as market eyes Nigeria supply disruptions

The Associated Press ,  Vienna   |  Tue, 06/24/2008 8:47 PM  |  Headlines

A faltering dollar, Mideast tensions and concerns over supply disruptions out of Nigeria propelled oil prices above US$138 a barrel Tuesday, less than US$2 away from crude's
trading record.

The crude futures market was also showing disappointment over Saudi Arabia's modest production increase announced Sunday at a meeting of oil producing and consuming nations. The kingdom said it would pump more crude oil this year if the market needs it, but its pledge fell far short of U.S. hopes for a larger increase.

Light, sweet crude for August delivery rose US$1.30 to US$138.04 a barrel by afternoon in European electronic trading on the New York Mercantile Exchange. On Monday the contract rose US$1.38 to settle at US$136.74 a barrel.

The increase put crude within striking distance of its trading record of US$139.89 established last week.

Prices increased as the U.S. dollar weakened - in morning European trading, the euro bought US$1.5559, up from US$1.5499 the night before in New York and other major currencies also gained on the dollar. (***)

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