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= OIL FUTURES: ICE Brent Steady; Holds Above $66/Bbl(Comtex Business Via Thomson Dialog NewsEdge)LONDON, Mar 31, 2006 (Dow Jones Commodities News via Comtex) --By Tim Falconer Of DOW JONES NEWSWIRES Crude oil futures in London Friday held above $66 a barrel as simmering concern about Iran's nuclear ambitions keeps speculators on edge. At 0950 GMT, the front-month May Brent contract on London's ICE Futures exchange was up 22 cents at $66.68/bbl. The front month May crude contract on the New York Mercantile Exchange was trading 34 cents lower at $66.84/bbl. In terms of products, the ICE's gasoil contract for April delivery was up $1.75 at $584.75 a metric ton, while Nymex gasoline for April delivery was down 2.07 cents at $1.9705 a gallon ahead of expiry later Friday. Oil markets steadied after a week that has seen front month ICE Brent move about 5.4% higher, while Nymex crude has put on about 4.6%. With the curtain coming down Friday on the first quarter of 2006, Nymex crude is $6.45, or 11%, higher than the beginning of the year. At the heart of the market's most recent rally has been Iran. A top Iranian envoy Thursday rejected the U.N. Security Council's call for a halt to uranium enrichment, saying his country's activities were "not reversible". Following on from this, Iran's Revolutionary Guards will begin military maneuvers Friday in the Persian Gulf and Arabian Sea, with a top commander saying the exercise is intended to boost Iran's "defense capabilities" against possible threats. "We've seen the market pause a little but these war games in the Persian Gulf will be watched very closely for any escalation in tension," said one oil broker. Also helping prop up the bull case for crude is gasoline strength. Wednesday's weekly data from the U.S. Department of Energy showed a massive drawdown in gasoline inventories sparking concern there will be a summer driving season shortfall. Oil analysts attributed a large chunk of the drawdown to a rise in gasoline demand, but with refinery utilization rates rising, the main reason for the draw is the cleaning out of stocks with the additive Methyl Tertiary-Butyl Ether as the oil industry phases in reformulated gasoline blendstock for oxygenate blending. In other news, Nigerian Oil Minister Edmund Daukoru said the over 600,000/bbl cut in Nigerian production - caused by unrest in the Niger Delta - is unlikely to be brought back onstream soon, the Nigerian Tribune daily reported Friday. Meanwhile, the Organization of Petroleum Exporting Countries pegged the value of its reference basket of 11 crude oils at $60.64 a barrel Thursday, up $0.69 from $59.95/bbl Wednesday and perched at its highest level since Feb. 2, OPEC said Friday. The basket now stands only $0.73 shy of its all-time record of $61.37/bbl hit on Sept. 2, 2005. -By Tim Falconer, Dow Jones Newswires; +44 (0) 207-842- 9449; [email protected] (END) Dow Jones Newswires 03-31-06 0503ET |