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Oil climbs 1%, Saudi pledge fails to halt rally

by jayr_patron | June 22, 2008 at 11:26 pm | 86 views | add comment

Even the world's biggest oil producer cannot stop the surge in oil prices--it is becoming clearer that speculation is the strongest force out there.

Oil rose nearly 1.0 percent Monday, as escalating tensions between Israel and Iran stoked supply concerns and traders doubted Saudi Arabia's promise to pump more oil, if needed, would turn back the rally.

A vow by Nigerian militants to halt attacks on oil facilities in the delta barely tempered the rise after two fresh attacks over the past week knocked out another tranche of output.

US light crude for August delivery extended early gains to rise $1.14 or 0.84 percent to $136.50 a barrel by 0508 GMT, reversing an early decline of more than $1.00. London Brent crude rose $1.29 or 0.96 percent to $136.15.