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DJ OIL FUTURES:NY Crude Nears Nine-Week High On Supply Fears(Comtex Business Via Thomson Dialog NewsEdge)By Leah McGrath Goodman Of DOW JONES NEWSWIRES NEW YORK, Apr 03, 2006 (Dow Jones Commodities News via Comtex) --Crude oil futures in New York surged more than a dollar at Monday's open, closing in on a nine-week high, as Iran's demonstrations of military might backed supply fears already piqued by the prospects of tight U.S. gasoline supplies this summer and an active hurricane season. "There's not a lot to stop this; the complex is looking a lot stronger," said Scott Meyers, senior trading analyst for Pioneer Futures Inc., a New York brokerage firm. But he cautioned that the "viciousness of the price swings" in past weeks may eventually pave the way for a downward correction later in the month. Benchmark light, sweet crude futures for May rose as much as $1.07 to $67.70 a barrel in early trading on the New York Mercantile Exchange, topping last week's high by 40 cents. The contract ended after-hours trading at $67.10 a barrel, up 47 cents. The last time a Nymex front-month crude futures climbed this high was Feb. 1, when it touched $69 a barrel in intraday trading. In London, Brent blend crude futures for May posted even bigger gains, up as much as $1.88 at $67.79 a barrel on ICE Futures. Nymex refined-product futures also rose, with May heating oil leading with gains of 1.77 cents at $1.8810 a gallon. Nymex gasoline futures for the same month last traded up 32 points at $1.8850 a gallon. On ICE Futures, April gasoil climbed $6.75 to $588.75 a metric ton. Gains Monday were helped by Iran's announcement Sunday that its second major missile test in days was a success. Oil-rich Iran, which already has the West on edge over its nuclear ambitions, said it test-fired what it described as a sonar-evading, high-speed underwater torpedo capable of destroying huge warships and submarines. The tests came during war games that Iran's elite Revolutionary Guards have been holding in the Gulf and the Arabian Sea since Friday. The timing of Iran's show of force didn't escape market observers wary of a brewing stand-off between Iran and oil-hungry nations such as the U.S. over Iran's nuclear program. "Iran not only seems more intransigent with every passing day, but also calls into question the sincerity of its peaceful intent with the display of new weaponry," said John Kilduff, an energy analyst for Fimat USA Inc. in New York. Iran, which views the U.S. as an arch foe and is concerned about its military presence in neighboring Iraq and Afghanistan, said its own military maneuvers aimed to develop its Guards' defensive capabilities. Monday's oil rally also fed off intensifying worries in the U.S. that a nationwide phase-out of a gasoline additive in favor of ethanol may lead to leaner gasoline supplies just in time for summer's peak demand. In addition, hurricane season - which runs from June 1 to November 30 - looms large in traders' minds after last year's disastrous storms along the U.S. Gulf Coast, where the nation draws the brunt of its fuel, oil and gas. Forecasters expect the 2006 hurricane season to be active, but likely not on par with 2005. Nigeria's Oil Minister Edmund Daukoru, also president of the Organization of Petroleum Exporting Countries, said Monday he was increasingly concerned by rising world oil prices. "Prices are getting to the high side again," he said. "But it's not surprising, because of all the concerns about the U.S. summer driving season and on concerns over the switch to ethanol." Daukoru said OPEC was "observing this and will be vigilant in moderating these types of price swings," whether higher or lower. He didn't offer specific details. -By Leah McGrath Goodman, Dow Jones Newswires; 1-201-938-2062; [email protected] (END) Dow Jones Newswires 04-03-06 1113ET |