Oil closes up; gas hits new record
NEW YORK - Oil prices rebounded from a steep early loss to end modestly higher yesterday in another volatile session fueled by a rising dollar and concerns about supplies. Gas prices reached a new record at the pump, rising to a national average of $4.06 a gallon, and are likely to keep rising.
Light, sweet crude for July delivery rose 36 cents to settle at $136.74 a barrel on the New York Mercantile Exchange.
Prices recovered from an earlier dip as low as $131.55 on reports that Nigeria's state-owned oil company will take over oil operations in parts of the country from a Royal Dutch Shell PLC joint venture, a move traders believe could cut output. Analysts said word of a possible strike by Nigerian oil workers contributed to oil's $5 rally from the day's lows.
Given the volatile price moves of recent days, analysts saw few signs of a changing trend in yesterday's trading. Many analysts believe that new records are a real possibility in coming days.
