Crude oil prices popped to over $71/barrel Mon. China is boosting its reserves again. Nigerian militants have partly shut down a Royal Dutch offshore oil platform.

Analyst Phil Flynn of Alaron said China’s plans to increase oil reserves by 60% should provide market some long-term support. Ughh!!

A Shell spokesman confirmed the Nigerian attack and partial shutdown. Previous attacks have reduced Nigerian outputs by 25%.

Retail gas prices still holding their own for now.

The average price of regular unleaded gas is approximately $2.66/gal., same place it’s been for the last 2 weeks.

It all comes down to crude, of course. The price has been hovering in a narrow $69-$70/barrel range.

Says Trilby Lundberg, comparing prices to the $4.097/gal a year ago:

“That price discount of a $1.44 is large but so is the number of motorists who are barely motoring at all,” Lundberg said. “The upcoming July Fourth holiday (is) hardly a point at all,” she said, noting that most people commonly use gasoline to drive to work and back.

“Only a reversal in employment levels would revitalize gasoline demand,” Lundberg said.

AAA says travel will be down this year. High gas prices and the economy to blame.

‘Many Americans remain cautious about the outlook for their personal finances and these attitudes are reflected in the slight decline in travel we are forecasting for the upcoming holiday weekend,” said AAA Chief Executive Robert L. Darbelnet.

Auto travel will be down, but air travel will be up. My goodness, they are giving away the seats! Hotels are aiding and abetting with attractive discounts.

Darbelnet again:

Those who do vacation this summer will find a plethora of attractive discounts,” Darbelnet said. “If you can afford to go, this summer is a smart time to travel.”

Good news - bad news. Be brave, consumers!

Iran is OPEC’s 2nd largest oil producer. Could the unrest there send oil prices higher?

No sign yet, but remember what happened in 1979-1981. How did you like them apples? Think rationing, high prices, recession

The ftalphaville blog reports that Goldman made a very bullish case for oil to investors on Wed. That would be Jeffrey Currie, head of Energy Research. He sees oil at $95/barrel by the end of 2010. Inflation coming our way, too.

The disconnect between oil prices & fundamentals was due to the trouble in the credit markets. Once the recovery is in full-swing, prices will reconnect.

Take a look at the full article so you don’t miss relevant graphs.