New York Oil Increases by $3, Largest Gain in Month

June delivery of crude oil increased $3.80 to settle at $116.32 a barrel on the Nymex Friday, it's first rise in four days, and the largest gain in a month.

For Brent crude, June delivery gained even more, as it grew by $4.06 percent to $114.56 on London's ICE Futures Europe exchange. That's the largest increase since March 18.

Although some blamed the air strike by Turkey on Kurdish rebels in Iraq as part of the reason for the surge, it couldn't account for the whole gain. It's probably investors getting back into the market, taking advantage of lower prices.

"News of the Turkish air attacks turned us around overnight, but it doesn't explain a $3 gain," said Tom Bentz, a broker at BNP Paribas in New York. "More than any headline in particular, we are just seeing investors come in to take advantage of the dip in prices this week."

OPEC

This is one of the reasons OPEC continues to resist increasing production, as they primarily blame the increase in oil prices on speculators of oil futures.

"OPEC will not increase production of crude oil because what is happening now is not an increase in oil demand, but heavy speculation on oil futures," Qatari Oil Minister Abdullah al-Attiyah said today. "That's what's making oil prices so high."

Shell Says Nigerian Pipeline Attack will have Minimal Impact on Oil Production

Shell said the recent attack on an oil supply pipeline in southern Nigeria won't have too much impact on oil production, after it found a leak on a pipeline connected to teh Bonny exports terminal - the largest in Nigeria.

"We discovered there was a major leak on the Greater Port Harcourt swamp pipeline. The leak appears to have been caused by explosives. We have isolated the line preparatory to repairs," Shell spokesman in Lagos Tony Okonedo told AFP. "Small quantities of oil have been shut in to allow for necessary repairs."

Shell is the largest oil exporter in Nigeria, accounting for approximately half the 2.1 million barrels a day output.

The company's pipelines have been under attack frequently over the last couple years, with a terrorist group named Movement for the Emancipation of the Niger Delta (MEND) claiming responsibility.

Shell said oil production has been cut back slightly as a result of the attack, as repairs are being made.

Oil surged to a new record high of $117 a barrel on Friday.