Energy Sector Roundup: Oil rises after Saudi boost

Saudi Production Rise Fails to Bring Down Oil

Oil prices rose after Saudi Arabia's modest production increase failed to push traders to sell.

Light, sweet crude for August delivery rose $1.38 to settle at $136.74 a barrel on the New York Mercantile Exchange.

Retail gas prices inched lower overnight but appear unlikely to change much as long as oil prices remain stuck in their recent trading range.

In Nymex trading Monday, July gasoline futures gained 1.59 cents to settle at $3.4551 a gallon, and July heating oil futures added 2.58 cents to settle at $3.7975. July natural gas futures rose 20.9 cents to settle at $13.203 per 1,000 cubic feet.

Congress Seeks Remedies to Rein In Speculators

Some lawmakers on Capitol Hill say investors have a role in rising oil prices, pointing out that speculation in crude futures has nearly doubled since 2000.

Pension funds, Wall Street banks and other large investors that have no intention of taking delivery of fuel have increasingly pumped money into contracts for oil and other commodities as a hedge against inflation when the dollar falls.

After more than a half dozen hearings in Congress on the issue, Democratic House lawmakers said they intend to tighten restrictions on pension funds, investment banks and other large investors which they blame for driving up fuel prices.