NEW YORK (Reuters) - Oil prices rose more than $1 on Monday after militant attacks slashed Nigerian oil production and Iran stirred geopolitical tensions by suggesting it was rapidly expanding its nuclear program.
The gains were limited somewhat by fresh evidence that high prices were shrinking demand in the United States -- a trend that has contributed to a record sell-off in oil prices since the mid-July peak.
U.S. crude gained $1.47 to settle at $124.73 a barrel, down from the July 11 record above $147. London Brent rose $1.32 to $125.84 a barrel.
The main militant group in Nigeria's Delta region said Monday it attacked two Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) pipelines. Shell said it halted some production due to the incident but declined to say how much.
The incident in Africa's biggest oil exporter followed the kidnapping of eight foreign oil workers last week.
Developments in Iran also provided some support. The country has more than 5,000 active centrifuges for enriching uranium, its president said, suggesting a rapid expansion of nuclear work.
President Mahmoud Ahmadinejad's announcement was likely to annoy major powers which have offered Iran a package of economic and other incentives to suspend its enrichment activities.
Oil's gains were trimmed somewhat after fresh evidence that surging oil prices and an economic slowdown in the United States were cutting into demand from the world's biggest consumer nation.
The gains were limited somewhat by fresh evidence that high prices were shrinking demand in the United States -- a trend that has contributed to a record sell-off in oil prices since the mid-July peak.
U.S. crude gained $1.47 to settle at $124.73 a barrel, down from the July 11 record above $147. London Brent rose $1.32 to $125.84 a barrel.
The main militant group in Nigeria's Delta region said Monday it attacked two Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) pipelines. Shell said it halted some production due to the incident but declined to say how much.
The incident in Africa's biggest oil exporter followed the kidnapping of eight foreign oil workers last week.
Developments in Iran also provided some support. The country has more than 5,000 active centrifuges for enriching uranium, its president said, suggesting a rapid expansion of nuclear work.
President Mahmoud Ahmadinejad's announcement was likely to annoy major powers which have offered Iran a package of economic and other incentives to suspend its enrichment activities.
Oil's gains were trimmed somewhat after fresh evidence that surging oil prices and an economic slowdown in the United States were cutting into demand from the world's biggest consumer nation.
