Oil rises on Nigeria strike threat

NEW YORK (Reuters) - Oil rose on Wednesday as a strike threat by workers in OPEC nation Nigeria stoked supply concerns ahead of a meeting of top producers and consumers aimed at tackling soaring energy prices.

U.S. crude settled up $2.67 to $136.68 a barrel, while London Brent crude settled up $2.72 at $136.44 a barrel.

Workers at the Nigerian unit of U.S. energy giant Chevron were poised to go on strike after talks between their union and management failed.

Further support came after the White House said it was not expecting Saudi Arabia to announce an output increase when producers and consumers meet in the kingdom on June 22.

News the world's top oil exporter plans to ramp up output to help bring down high prices, which touched a record near $140 a barrel earlier this month, had weighed on prices earlier in the week.

"The news about Nigeria workers at Chevron ready to strike is unsettling because they produce light sweet crude, which we want and if OPEC doesn't raise output ... that's bullish for crude," said Mark Waggoner of Excel Futures Inc.

Rising fuel costs have caused protests around the globe, prompting Saudi Arabia to call the meeting between producers and consumers in Jeddah.

Oil prices have jumped nearly 40 percent this year, extending a six-year rally that has sent prices up nearly seven-fold on rapid demand growth from emerging economies like China.

A surge in speculative buying by investors hedging against inflation and the weak dollar has accelerated the rally this year. Some analysts say rising investor flows have created an oil "bubble" that has inflated prices beyond what supply and demand fundamentals warrant.