Crude futures jump above $100 on supply worries

Crude futures closed for the first time above 100 U.S. dollars a barrel Tuesday, driven by concerns that OPEC will cut output and geopolitical tensions in Venezuela and Nigeria.

The "Inca", a ship carrying 276.000 barrels of Venezuelan crude oil is seen as it arrives at Puerto Sandino, 44 miles (70 km) west of Managua Feb. 17, 2008. (Xinhua/Reuters Photo)Light, sweet crude for March delivery rose 4.51 U.S. dollars at a record 100.01 a barrel on the New York Mercantile Exchange after earlier rising to 100.10 dollars, a new trading record. The previous high was struck on Jan. 3 as London Brent crude settled up 3.65 dollars at 98.56 dollars a barrel. An explosion Monday at a 67,000 barrel per day refinery in Texas also underpinned prices. Officials said they were expecting to partially restart the plant in about two months. Analysts said there was growing speculation that OPEC, which supplies about 40 percent of the world's oil, would cut output at its March 5 meeting in Vienna. Further price support came form a threat by a rebel group in Nigeria to escalate attacks on the nation's crude oil infrastructure. The rebels were acting in response to rumors that the government had killed a captured leader, whom authorities later said was safe and well. Militant attacks have cut about 20 percent of Nigeria's crude output in recent years. Crude prices began to rally last week when Venezuela cut exports to Exxon Mobil after the U.S. company won court rulings to freeze 12 billion dollars of OPEC nation's assets as part of an arbitration battle. Worries about the economic health of the United States and the falling dollar had caused a rush of speculative investment in oil and other commodities, which helped push up prices in the asset class. Other energy futures also jumped Tuesday. March gasoline jumped10.93 cents to settle at 2.6031 dollars a gallon, and March heating oil rose 11.45 cents to settle at 2.7614 dollars a gallon. VietNamNet/Xinhuanet