Market watch: Energy futures prices rise on US-Iraq tensions, cold snap

By the OGJ Online Staff

HOUSTON, Mar. 12 -- Escalating tensions between Iraq and the US pushed international energy futures market prices higher Monday.

Traders said they were becoming increasingly nervous about the possibility of crude supply disruptions from the Middle East. During the weekend, Iraqi Vice-Pres. Tyaha Yassin Ramadan reportedly said that there is no need for United Nations weapons inspectors to return. That puts Iraq on a collision course with the administration of President George W. Bush, which has demanded that Baghdad again submit to UN monitoring of the country's capability to develop and produce weapons of mass destruction.

In addition, a cold snap across the northeastern US supported heating oil and natural gas prices.
Meanwhile, the ministers of the Organization of Petroleum Exporting Countries are scheduled to meet Friday in Vienna and are expected to extend their Jan. 1 quota reductions through the second quarter.

The April contract for benchmark US light, sweet crude added 47¢ to $24.31/bbl Monday on the New York Mercantile Exchange, while the May contract rose 50¢ to $24.64/bbl.
In after-hours electronic trading, the May contract slipped 1¢ to $24.30/bbl, while the April contract held steady at $24.64/bbl.
Unleaded gasoline for April delivery gained 2.29¢ to 79.10¢/gal on NYMEX. Heating oil for the same month was up 1.51¢ to 63.45¢/gal. The April natural gas contract jumped 22.1¢ to the equivalent of $3.02/Mcf.

In London, the April contract for North Sea Brent crude also rallied, briefly breaking above $24/bbl on the International Petroleum Exchange. IPE April Brent futures settled up 56¢ to $23.89/bbl. The day's high was 24.05/bbl, and the low was $23.53/bbl. The April natural gas contract gained 0.04¢ to the equivalent of $2.22/Mcf.

The average price for OPEC's basket of benchmark crudes gained 57¢ to $22.44/bbl Monday, reaching its targeted price band of $22-28/bbl.