Oil Rises Above $137 Despite Saudi Pledge to Boost Output

Crude oil rose to topped $137 a barrel on Monday before falling back, despite a pledge by Saudi Arabia over the weekend to boost production by 200,000 barrels a day, Bloomberg reported.

Benchmark light sweet crude futures rose $2.12 from Friday to settle at $136.74 a barrel on the New York Mercantile Exchange, Bloomberg said.

The increase due in part to rebel attacks on a key oil pipeline in Nigeria late last week that interrupted production of 300,000 barrels a day, Bloomberg reported.

OPEC President Chakib Khelil blamed the continued high price of oil on speculative investors, the subprime credit crisis and geopolitics, rather than a shortage of supply, Bloomberg said.

Oil closed at a record $138.54 on June 6, and topped out at an intraday high of $139.89 last Monday.

Meanwhile, the International Energy Agency estimated that world oil use this year will climb by 800,000 barrels a day, or 1%, as demand climbs in emerging markets, Bloomberg reported.