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DJ OIL FUTURES: Nymex Crude Tops $67 On Mogas, Iran Tensions(Comtex Business Via Thomson Dialog NewsEdge)By Masood Farivar Of DOW JONES NEWSWIRES NEW YORK, Mar 30, 2006 (Dow Jones Commodities News via Comtex) --Oil prices topped $67 a barrel Thursday for the first time since early February as gasoline futures rallied again and tensions over Iran's nuclear program heightened. Gasoline futures jumped more than cents on top of a gain of nearly 7 cents Wednesday that came after data showed U.S. gasoline stocks fell by a surprisingly large draw of 5.4 million barrels last week, their biggest weekly draw since August 2003. After climbing to their highest level in seven years last month, gasoline stocks have fallen nearly 10 million barrels in just the past four weeks, a trend analysts expect to continue for several more weeks as refiners undergo heavy seasonal maintenance work. "We won't have a very strong inventory situation, certainly not enough to keep markets from testing higher," said Mary Novak, an analyst at forecaster Global Insight. "Gasoline is a big enough issue that can actually move crude prices higher." The surge in gasoline futures along with news that Iran was planning a major naval exercise in the Persian Gulf prompted traders to bid up crude futures. "I think the market freaked out about the Iranian thing," a broker said. "I don't thing it's going to go away." The May crude contract on the New York Mercantile Exchange jumped 70 cents at $67.15 a barrel after hitting a new two-month high of $67.30 a barrel. April gasoline futures rose 4.15 cents to finish at $1.9957 a gallon. April heating oil rose 3.23 cents to $1.8843 a gallon. April products futures expire Friday, the last trading day of the month. Final settlement prices weren't in yet. Iran plans to launch a week of military exercises called 'Holy Prophet' by firing a Shahab II missile, an Islamic Republic News Agency report said. The commander of the Islamic Republic Guard Corps Naval Force, Admiral Morteza Saffari, said the display would demonstrate "the country's full readiness to defend the territorial integrity of the motherland," according to the report. The announcement came after the U.N. Security Council voted unanimously on Wednesday to demand that Iran suspend nuclear enrichment. The move raised worries among traders that Iran might decide to halt its oil exports in response to growing international pressure. Iranian officials have repeatedly said they have no such plans. "I still think the market is concerned that although we have a lot of inventory for crude, it may not last long if we were to lose a larger producer like Iran," the broker said. "If the market felt comfortable with the current oversupply there would be no reason for anyone to be bidding up prices to $67." -By Masood Farivar; Dow Jones Newswires; 201-938-2094; [email protected] (END) Dow Jones Newswires 03-30-06 1550ET |