No Ceiling Yet for Oil

Oman's oil minister, Mohammed al-Rumhy, told Bloomberg that the "price is going out of control," and that a "number of factors are happening at the same time that have nothing to do with OPEC." He cited the instability in Iraq, security threats in Nigeria and a shortage in global refining as some of the reasons behind the surge.

In corporate news, Rowan Cos.(RDC), the drilling services provider, received a $65 million contract for its jack-up rig in the North Sea. Its shares jumped on the news by 1.5% to $30.09.

Another drilling services company, Pride International(PDE), reported Monday that it has sold and leased a few of its rigs for a total of $69.5 million. Pride said it renewed one of its rig contracts for about $44 million, or $60,000 a day, and sold four idle land drilling rigs from its Eastern Hemisphere Division for $25.5 million. Shares rose 13 cents, or 0.51%, to $25.64.

Shares of Pioneer Drilling(PDC) rose 4% on the drillers group's strength Monday.

Elsewhere in the oil services world, the Philadelphia Oil Service Sector Index is up more than 1.5%, led by a 3% gain at Baker Hughes(BHI) and a 2.3% jump at Weatherford(WFT).

Among the major producers shares were trading higher, with the Amex Oil Index gaining 1.4%. Exxon Mobil(XOM) added 1.63%, Chevron(CVX) gained 0.65%, ConocoPhillips(COP) increased 2.25%, Royal Dutch/Shell(RD) added 1.80%, and BP(BP) rose 0.91%.

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