Crude oil rose above $59 a barrel in New York after the U.S. warned that militant attacks in Nigeria, Africa's biggest oil producer, may expand to new areas and become more violent.
A Nigerian militant group is planning to broaden strikes beyond the Niger delta region, according to a statement from the U.S. consulate in Lagos. Nigeria is the fifth-biggest U.S. oil supplier. Refineries in Pennsylvania, Delaware and Ontario have slowed output this week because of fires and power outages.
``The Nigeria headlines are lending support to the market,'' said Tom Bentz, an oil broker with BNP Paribas Inc. in New York. ``Gasoline has the biggest move today and is helping pull up the other energy contracts because of the spate of refinery problems.''
Crude oil for March delivery rose $1.40, or 2.4 percent, to $59.39 a barrel on the New York Mercantile Exchange, the highest close since Feb. 9. Prices fell 0.8 percent this week and are 1.6 percent higher than a year ago.
There will be no floor trading in New York on Feb. 19 for the Presidents Day holiday. Electronic trading will be unaffected by the holiday.
Daily price swings in crude oil futures are widening. Futures fell or rose more than 1.5 percent on 27 trading days in the past two months compared with 15 days in the same period a year earlier, according to data compiled by Bloomberg.
Gasoline for March delivery rose 4.81 cents, or 3 percent, to $1.6453 a gallon in New York, the highest close since Dec. 21.
`Possible Targets'
``Possible targets could include expatriate personnel, Western businesses or facilities and locales visited by tourists and foreigners in other regions of Nigeria,'' the e-mailed statement said. ``Attacks and kidnappings may become more violent than in recent months.''
Attacks in the Niger Delta, Nigeria's major oil-producing region, have intensified in the past year with more than 200 people being kidnapped, about half of them expatriates. The offensive by the Movement for the Emancipation of the Niger Delta has forced Royal Dutch Shell Plc's Nigeria unit to halt output of about 500,000 barrels a day, almost a quarter of the nation's production.
Prices may fall next week as the warmer weather moves into the East, according to a Bloomberg News survey. Twenty-one of 42 analysts, traders and brokers, or 50 percent, said prices will decline, the survey showed. Ten expected an increase and 11 forecast little change. Last week, 35 percent of respondents expected futures to fall.
Above-Normal Temperatures
Temperatures in most of the eastern half of the country are expected to be above normal from Feb. 21 through March 1, according to the National Weather Service. Starting in late February, refineries begin maintenance to make less heating oil and more gasoline as the driving season approaches.
``The worst of the winter is over,'' said Michael Fitzpatrick, vice president for energy risk management at Fimat USA in New York. ``There's a feeling that the bulk of the heating season will be over next week.''
Home prices fell in half of U.S. cities in the fourth quarter as a housing slump forced sellers to accept lower prices, the National Association of Realtors said yesterday.
``One reason demand held up over the last three years in spite of high gasoline prices was the wealth effect from high housing prices,'' Fitzpatrick said. ``It now looks like that is coming to an end.''
Brent crude oil for April settlement rose $1.35, or 2.3 percent, to close at $58.95 a barrel on the London-based ICE Futures exchange.
A Nigerian militant group is planning to broaden strikes beyond the Niger delta region, according to a statement from the U.S. consulate in Lagos. Nigeria is the fifth-biggest U.S. oil supplier. Refineries in Pennsylvania, Delaware and Ontario have slowed output this week because of fires and power outages.
``The Nigeria headlines are lending support to the market,'' said Tom Bentz, an oil broker with BNP Paribas Inc. in New York. ``Gasoline has the biggest move today and is helping pull up the other energy contracts because of the spate of refinery problems.''
Crude oil for March delivery rose $1.40, or 2.4 percent, to $59.39 a barrel on the New York Mercantile Exchange, the highest close since Feb. 9. Prices fell 0.8 percent this week and are 1.6 percent higher than a year ago.
There will be no floor trading in New York on Feb. 19 for the Presidents Day holiday. Electronic trading will be unaffected by the holiday.
Daily price swings in crude oil futures are widening. Futures fell or rose more than 1.5 percent on 27 trading days in the past two months compared with 15 days in the same period a year earlier, according to data compiled by Bloomberg.
Gasoline for March delivery rose 4.81 cents, or 3 percent, to $1.6453 a gallon in New York, the highest close since Dec. 21.
`Possible Targets'
``Possible targets could include expatriate personnel, Western businesses or facilities and locales visited by tourists and foreigners in other regions of Nigeria,'' the e-mailed statement said. ``Attacks and kidnappings may become more violent than in recent months.''
Attacks in the Niger Delta, Nigeria's major oil-producing region, have intensified in the past year with more than 200 people being kidnapped, about half of them expatriates. The offensive by the Movement for the Emancipation of the Niger Delta has forced Royal Dutch Shell Plc's Nigeria unit to halt output of about 500,000 barrels a day, almost a quarter of the nation's production.
Prices may fall next week as the warmer weather moves into the East, according to a Bloomberg News survey. Twenty-one of 42 analysts, traders and brokers, or 50 percent, said prices will decline, the survey showed. Ten expected an increase and 11 forecast little change. Last week, 35 percent of respondents expected futures to fall.
Above-Normal Temperatures
Temperatures in most of the eastern half of the country are expected to be above normal from Feb. 21 through March 1, according to the National Weather Service. Starting in late February, refineries begin maintenance to make less heating oil and more gasoline as the driving season approaches.
``The worst of the winter is over,'' said Michael Fitzpatrick, vice president for energy risk management at Fimat USA in New York. ``There's a feeling that the bulk of the heating season will be over next week.''
Home prices fell in half of U.S. cities in the fourth quarter as a housing slump forced sellers to accept lower prices, the National Association of Realtors said yesterday.
``One reason demand held up over the last three years in spite of high gasoline prices was the wealth effect from high housing prices,'' Fitzpatrick said. ``It now looks like that is coming to an end.''
Brent crude oil for April settlement rose $1.35, or 2.3 percent, to close at $58.95 a barrel on the London-based ICE Futures exchange.
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