Prices for crude oil rise after terrorist attack

BEIRUT, Lebanon (AP) -- Oil prices jumped Tuesday in the first indication of market sentiment after a terror attack targeting Western oil workers that left 22 people dead, and oil ministers began gathering in Beirut to debate a possible production increase.
Contracts for Brent crude oil for July delivery trading on the International Petroleum Exchange in London opened up $1.11 over Friday's close at $37.71 before falling back slightly to $37.68 in the first half-hour of trading.
Futures contracts of U.S. light crude for July delivery also responded strongly, trading at $40.93, up $1.05 over Friday's close in after-hours electronic trading on the New York Mercantile Exchange.
Both markets were closed Monday because of holidays in the United States and Britain.
A 25-hour shooting rampage and hostage standoff that began Saturday in the Saudi oil hub of Khobar, the second terror attack on an oil-related target in the kingdom in a month, raised fears that a jittery market would send already high prices further up.
The attack came just days before the OPEC gathering in Beirut, which begins Thursday to debate a possible production increase. Ministers were beginning to gather in the Lebanese capital, with Saudi Oil Minister Ali Naimi expected later Tuesday.
Saudi Arabia, the world's largest oil producer, has already raised its output to 9.1 million barrels a day, well above its 7.638 million barrel per day OPEC quota. The kingdom has proposed OPEC formally raise its output ceiling of 23.5 million barrels per day to help bring prices down.
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