$58.16 a barrel at 09:33 +.35
http://www.nymex.com/lsco_fut_condet.aspx?product=CL&month=Mar&cmonth=H&year=7&currPrev=C
FUTURES MOVERS
Crude flat as traders weigh supplies, weather
By
Ciara Linnane, MarketWatch
Last Update: 9:18 AM ET Feb 13, 2007
NEW YORK (MarketWatch) - Crude-oil and natural-gas futures reversed early losses to trade slightly higher Tuesday with traders waiting for weekly data on supplies to confirm whether the recent cold snap has made any inroad into abnormally high supplies.
There was support for prices in news that the International Energy Agency has raised its global oil demand forecast for 2006 and 2007, mostly because of higher expectations for demand from China.
Crude for March delivery was last up 13 cents at $57.94 a barrel on the New York Mercantile Exchange. On Monday, the contract slid more than $2, pressured by comments from the Saudi Arabian oil minister playing down the likelihood of more production cuts by the Organization of the Petroleum Exporting Countries when it meets in March.
Natural gas was last up 5.9 cents at $7.285 per million British thermal units. That contract skidded 8% on Monday as traders bet the cold weather won't be enough to save the market from a supply surplus before winter ends.
Edward Meir, analyst at Man Financial, said traders are getting nervous about the prospect of a change in the weather after more than a week of below-freezing temperatures in the northeastern U.S. That's the region that consumes the most heating fuel during a typical winter. Forecasts are for a snow storm in the New York area in the next two days - but it may be too little, too late.
"Although below-normal temperatures were again forecast for at least the next six days in key consuming cities, temperatures in New York were seen climbing into the high 30's, while Chicago temps were seen topping out in the 20's, and above last week's highs," said Meir.
Meanwhile, in its latest monthly report, the IEA said it's raising its global oil demand forecast for 2006 by 111,000 barrels a day to 84.5 million barrels a day. For 2007, the agency raised its forecast by 273,000 barrels a day to 86 million barrels. The IEA said non-OECD demand has been adjusted upwards in 2005, 2006 and 2007 to account for a reappraisal of Chinese demand. Consumption in this area is expected to grow by 3.6% in 2006 and 3.2% in 2007.
On the political front, news of a deal with North Korea over its nuclear program could lead to a further unwinding of geopolitical risk premium, said Meir.
Six-nation talks held in Beijing, China, ended with North Korea agreeing to take the first steps toward nuclear disarmament in return for economic aid, the BBC reported on its website.
Pyongyang has agreed to close its main nuclear reactor within 60 days, in return for 50,000 metric tons of fuel aid or economic aid of equal value. It has further agreed to allow international inspections to resume.
Meanwhile, Iranian President Mahmoud Ahmadinejad said he is open to talks on Tehran's nuclear program, although he said Iran's rights must be safeguarded, the BBC reported. Just one day earlier, Ahmadinejad said Iran would defend itself against any U.S. attack on its nuclear facilities.
In other energy futures, reformulated gasoline was up 1 cent at $1.5631 a gallon and heating oil was down 0.3 cent at $1.6425 a gallon.
http://www.marketwatch.com/News/Story/Story.aspx?column=Futures+Movers
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