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DJ OIL FUTURES: Crude In NY Rallies Above $60/Bbl At Open(Comtex Business Via Thomson Dialog NewsEdge)By Leah McGrath Goodman Of DOW JONES NEWSWIRES NEW YORK, Mar 13, 2006 (Dow Jones Commodities News via Comtex) --Crude oil futures in New York jumped above $60 a barrel at Monday's open, as concerns of potential oil-supply disruptions offset the comfort of a five-year high in U.S. petroleum-inventory levels. Benchmark light, sweet crude futures for April delivery rose as much as 89 cents in early trading to touch $60.85 a barrel on the New York Mercantile Exchange, throwing off last session's losses. The contract ended after-hours trading at $60.06 a barrel, up 10 cents. In London, Brent blend crude futures for April delivery rose as much as 76 cents to $61.85 a barrel on ICE Futures. Nymex refined-product futures also sprinted higher, with heating oil leading, despite warmer-than-usual temperatures in New York. April heating oil futures climbed as much as 4.54 cents to $1.7300 a gallon, while Nymex gasoline futures rose as much as 4.44 cents to $1.7325 a gallon. On ICE, the new April gasoil futures contract leapt as much as $10 to $542 a metric ton. Political turbulence surrounding oil-rich Iran and Nigeria - not rising oil stockpiles - remained foremost in traders' minds at the start of the week, said Tom Bentz, a broker in New York for French bank BNP Paribas. Bentz said traders will be watching for word from the U.N. Security Council on any potential punitive trade or economic restrictions against Iran after the U.N.'s nuclear watchdog group said it couldn't verify the peaceful nature of Iran's nuclear plans. In addition, past weeks of militant attacks on oil interests in Nigeria have left traders jittery about a reprise, he added, echoing the sentiments of other market participants. The strikes on the petroleum industry led to the derailment of as much as 20% of oil production in Nigeria, Africa's biggest oil exporter. "We may see a statement out from U.N. Security Council about Iran, possibly followed by sanctions, and we still have some Nigerian barrels off the market," Bentz said. While no fresh violence in Nigeria was reported Monday, militants said their 21-day deadline for Exxon Mobil Corp. (XOM) to pay compensation for a 1998 oil spill stands, and won't be subject to negotiations. "If Exxon Mobil refuses to honor its obligation to the victims of the 1998 oil spillage, we shall unleash a festival of carnage on all their operations in the Niger Delta. This is our final word," the militant group said in an e-mail. Efforts toward a compromise with Iran over its nuclear ambitions continued Monday, even after the Middle East nation rejected Russia's offer of uranium enrichment, contingent on Iran's suspension of its own enrichment activities. Iranian officials have rejected the condition. Bentz said it remained to be seen whether Iran was employing stall tactics or was truly open to finding some middle ground with primarily Western nations that worry Iran's uranium enrichment could lead to the development of a nuclear bomb. "We'll let the diplomatic wheels turn, and hopefully something can be worked out," he said. Russian Foreign Minister Sergey Lavrov said Monday that Moscow will hold another round of nuclear consultations with Iran shortly. The discussions could come as soon as Tuesday or Wednesday, according to the Interfax news agency, which cited an unnamed source in Russia's embassy. Iran's Economy Minister warned Monday that the consequences of any U.S.-backed trade and economic sanctions could have severe ramifications for the U.S. and Europe. "Assuming (sanctions) happen under U.S. pressure, its economic consequences would return to the Americans," said Iranian Economy Minister Dawoud Danesh-Jaffari at a press conference. He added, "Europe is Iran's principal trading partner and any restrictions on Iran would be in their loss." He questioned whether the international community, particularly the big oil-consuming countries like the U.S., had the resources to deal with an energy crisis resulting from an absence of Iranian oil. -By Leah McGrath Goodman, Dow Jones Newswires; 1-201-938-2062; [email protected] (END) Dow Jones Newswires 03-13-06 1126ET |