Crude rose on Monday as supply worries continue despite a decision from South Arabia to raise oil production, while gasoline rose to $4 a gallon in some areas in the United States.
On Friday, oil minister Ali al-Naimi said Saudi Arabia will increase supplies of crude by about 3.3 percent or 300,000 barrels to 9.45 million barrels a day in June, however investors fear the action will not help lower prices.
Crude oil futures for June delivery rose $1.01 or 0.80 percent to $127.30 a barrel by 4:23 p.m. in the New York Mercantile Exchange on Monday. Prices hit a record high of $127.82 a barrel on May 16.
President Chakib Khelil from the Organization of Petroleum Exporting Countries commented that the market of oil is well supplied and OPEC will not increase oil production.
He reiterated that prices have hit record highs due to speculators, investors that buy oil to compensate for a weak dollar and geopolitical clashes.
Prices for regular gas rose for the first time above $4 a gallon in Chicago and Long Island last Friday according to a Lundberg Survey released yesterday of 7,000 stations in the U.S.
Brent crude futures for three months delivery fell 0.45 cents or 37 percent to $123.12 a barrel on the London ICE Futures Exchange today.