White House officials Monday welcomed Saudi Arabia's pledge to boost oil production, but prices rose despite the Saudi action.
The cost of a barrel of oil for future delivery went up about $2 and rose as high as $137.50 a barrel in New York trading.
Oiltraders apparently calculated that increased Saudi production could beoffset by political unrest and labor problems in Nigeria's oilindustry.
Oil prices have doubled in the past year and are akey political issue in the U.S. presidential race. RepublicanCandidate John McCain is scheduled to announce several ideas to easethe energy crisis in a speech later Monday. Those proposals includeoffering a $300 million prize to encourage scientists to create a morepractical battery that could power electric cars and reduce the needfor oil.