A U.S. Energy Information Administration report projected crude oil consumption would increase at the rate of 1.2 million barrels per day in 2008.

Supply worries continued after a series of attacks on Royal Dutch Shell (NYSE:RDS-A) pipelines in Nigeria last week.

On the New York Mercantile Exchange, the price of crude jumped nearly a dollar Tuesday to $121.85 per barrel.

The price of heating oil rose 0.0025 cents to $3.356 per gallon. The price of reformulated gasoline blendstock fell 0.0028 cents to $3.1027 per gallon. Natural gas prices fell 0.015 cents to $11.135 per million British thermal units.

At the pump, the national average price for a gallon of unleaded gasoline dropped fractionally to $3.61 per gallon from Monday's price of $3.611 per gallon, AAA reported.