Oil Energy Thread (oih)

[madrose1]

Oil Prices Climb Above $59 Per Barrel, Led by Heating Fuel Price Gains


NEW YORK (AP) -- Oil prices jumped more than $1 per barrel Friday, led by gains for heating fuels, in another volatile trading day for crude. Light, sweet crude for March delivery rose $1.40 to settle at $59.39 a barrel on the New York Mercantile Exchange after dipping as low as $57.59 earlier in the session.
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Helping to push up prices was a U.S. warning that Nigerian militants may be planning to expand their activities beyond the restive southern petroleum-producing regions.

The Lagos-based consulate said possible targets could include expatriate personnel, Western businesses or facilities and locales visited by tourists and foreigners.

Citigroup Futures Research energy analyst Tim Evans said traders were also taking a second look at natural-gas inventory numbers released Thursday, which helped boost heating fuel prices.

Last week's withdrawal of 259 billion cubic feet from underground storage was short of some analysts' expectations, but it was the biggest since 1997, he said.

Natural gas prices rose 21.1 cents to $7.503 per 1,000 cubic feet, and heating oil prices rose 4.63 cents to $1.6734 a gallon, helping to lead up crude prices.

Brent crude rose $1.35 to $58.95 on London's ICE futures exchange.

Phil Flynn of Alaron Trading Corp. said traders also may have been skeptical about forecasts for warmer weather for the U.S. Northeast, the world's largest heating oil market.

The U.S. National Oceanic and Atmospheric Administration said it expects above-normal temperatures next week to end a spate of freezing weather in the U.S. Northeast, which accounts for 80 percent of the nation's heating oil demand.

Oil price swings have become the norm recently, as 11 of the prior 16 sessions saw daily moves of more than $1, Cameron Hanover's Peter Beutel wrote in a research report. On Thursday, prices dropped more than $1 before settling down just a penny.

Analysts said the upcoming three-day weekend, with the Nymex closed on President's Day, and the March oil contract's expiring on Tuesday may also have pushed up volatility.

In other Nymex trading, gasoline futures rose 4.81 cents to $1.6453 per gallon.