disruptions

Traders again shrugged off a pledge by Saudi Arabia to increase its oil production if needed and oil prices rose Monday, with the focus on disruptions to Nigerian supply and heightened Middle East tensions.

Saudi Arabia said Sunday it would produce more crude oil this year if the market needs it.

The kingdom announced a 300,000 barrel per day production increase in May and said before the start of the meeting in Jeddah that it would add another 200,000 barrels per day in July, raising total daily output to 9.7 million barrels.

"There are many in the market who think these prices are as good as it gets and are positioned to see lower prices but we continue to see one-off supply issues keeping prices high"

Oil prices steadied Wednesday after hitting a record near $123 a barrel in the previous day's session on worries over supply disruptions.

Consumer spending, the main driver for economic growth, is stalling out. The Commerce Department says that after adjusting for inflation, the amount that consumers spent in January was unchanged from what they spent in December.

Outside of the disruptions from Hurricane Katrina, consumer spending has not been this weak since late 2001 _ when the country was struggling to emerge from recession.