Light, sweet crude for April delivery gained 13 cents to $61.27 a barrel on the New York Mercantile Exchange in afternoon trading, after earlier rising as high as $61.75. Friday's closing price of $61.14 was the highest since Dec. 22.

April Brent crude on London's ICE Futures exchange rose 24 cents to $61.12 a barrel on Monday.

Nymex heating oil prices rose less than 1 cent to $1.7539 a gallon while natural gas futures fell 9.3 cents to $7.662 per 1,000 cubic feet.

U.S. inventory figures released last Thursday showed a larger-than-expected decline in distillates, which include heating oil and diesel, as well as a drop in gasoline inventories.

Several analysts are forecasting a decline in stockpiles of heating oil when the government issues its weekly inventory report on Wednesday, said Jason Schenker, an economist with Wachovia Corp. However, Schenker said he expects the drop to be much smaller compared with the prior week.

Working gas in storage was 1,865 Bcf as of Friday, February 16, 2007, according to EIA estimates. This represents a net decline of 223 Bcf from the previous week. Stocks were 296 Bcf less than last year at this time and 182 Bcf above the 5-year average of 1,683 Bcf. In the East Region, stocks were 87 Bcf above the 5-year average following net withdrawals of 151 Bcf. Stocks in the Producing Region were 84 Bcf above the 5-year average of 532 Bcf after a net withdrawal of 60 Bcf. Stocks in the West Region were 12 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 1,865 Bcf, total working gas is within the 5-year historical range.

- Oil fell on expectations temperatures in the US Northeast are set to moderate, decreasing heating oil demand.

At 3.27 pm, front-month Brent North Sea crude contracts for April delivery were down 88 cents to 57.26 usd per barrel. The contracts dipped 81 cents to close at 58.14 usd yesterday.

Meanwhile, front-month New York light sweet crude contracts for March delivery, which expire later today, were trading at 57.71 usd a barrel, down 1.66 usd from Friday's close. NYMEX did not issue a settlement price yesterday as US markets were closed for the Presidents Day holiday.

'Prices have pulled back significantly, particularly heating oil, as weather remains the primary focus,' said Fimat analyst Mike Fitzpatrick.

Working gas in storage was 2,088 Bcf as of Friday, February 9, 2007, according to EIA estimates. This represents a net decline of 259 Bcf from the previous week. Stocks were 193 Bcf less than last year at this time and 268 Bcf above the 5-year average of 1,820 Bcf. In the East Region, stocks were 151 Bcf above the 5-year average following net withdrawals of 179 Bcf. Stocks in the Producing Region were 109 Bcf above the 5-year average of 567 Bcf after a net withdrawal of 68 Bcf. Stocks in the West Region were 8 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 2,088 Bcf, total working gas is within the 5-year historical range.

Oil prices fell back from the $60-a-barrel mark Monday as the market anticipated a supply surplus in the second quarter and following a suggestion that OPEC is unlikely to further cut production.

On Friday, prices climbed briefly above the psychological $60 barrier on unrelenting cold U.S. weather.


But light, sweet crude for March delivery was down 84 cents to $59.05 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. Brent crude for March dropped $1.13 to $57.88 a barrel at London's ICE Futures exchange.

Working gas in storage was 2,347 Bcf as of Friday, February 2, 2007, according to EIA estimates. This represents a net decline of 224 Bcf from the previous week. Stocks were 26 Bcf less than last year at this time and 378 Bcf above the 5-year average of 1,969 Bcf. In the East Region, stocks were 238 Bcf above the 5-year average following net withdrawals of 139 Bcf. Stocks in the Producing Region were 137 Bcf above the 5-year average of 607 Bcf after a net withdrawal of 63 Bcf. Stocks in the West Region were 3 Bcf above the 5-year average after a net drawdown of 22 Bcf. At 2,347 Bcf, total working gas is within the 5-year historical range.

Oil prices edged up Wednesday after a government report showed an unexpected decline in weekly U.S. crude oil inventories, suggesting that the recent frigid weather is eating into supplies.

The Department of Energy said Wednesday that crude oil inventories fell by 400,000 barrels last week to 324.5 million barrels. Analysts expected an average build of 950,000 barrels, according to a Dow Jones Newswires survey of energy analysts.

"This report is solid confirmation of solid heating demand," said Tim Evans, energy analyst at Citigroup Global Markets.

Crude supplies remain at the upper end of the average range for this time of year, however.

Light, sweet crude for March delivery inched up 7 cents to $58.95 a barrel in late morning trading on the New York Mercantile Exchange.

Brent crude was unchanged at $58.42 Wednesday on London's ICE commodities exchange.

The government also reported that distillate fuel inventories — which includes heating oil and diesel fuel — fell by 3.7 million barrels, more than analysts' expectations of a 2.9-million-barrel drawdown.

Meanwhile, motor gasoline inventories rose by 2.6 million barrels, surprising analysts who expected an average gain of 1.35 million barrels. Both distillate fuels and gasoline stocks remain at the upper end of average for this time of year.

Heating oil futures rose by half a penny to $1.6960 a gallon, while gasoline futures rose by less than a cent to $1.5739 a gallon.

Recent bitter winter weather in the U.S. Northeast — which makes up 80 percent of the nation's heating oil demand — has helped to buoy crude oil and heating oil prices this week.

The National Oceanic and Atmospheric Administration continues to forecast below-normal temperatures across the U.S. Northeast until at least Feb. 19. The low temperatures have helped lift prices 19 percent since Jan. 18, when crude touched a 20-month low of $49.90.

Traders have yet to send prices above $60 a barrel, a level not seen since the first trading day of the year. Continued cold weather may not be enough to boost prices over that "psychological barrier," especially this late in the winter season, according to Ray Mazzeo, vice president at Energy Merchant LLC.

Instead, Mazzeo expects increasing tensions between Iran and the U.S. to be the main driver in boosting prices.

"I think the anticipation of the expiring of the Iran sanctions has brought us to this level so far," Mazzeo said. "If we get a hard line from Iran refusing to stop uranium enrichment, then we could see $60 a barrel."

In other Nymex trading, natural gas prices advanced more than 14 cents to $7.758 per 1,000 cubic feet.

Oil prices spiked higher Tuesday, bolstered by expectations that heating fuel demand would jump as arctic weather blasted through parts of the United States, the world's top energy consumer.

The likelihood of prolonged cold temperatures were expected to be reflected in heating oil stock draws when the U.S. inventory report is published Wednesday. Vienna's PVM Oil Associates predicted a 3.3 million-barrel drop in distillate inventories, even while forecasting increases in crude and gasoline supplies.

Light, sweet crude for March delivery jumped 46 cents to $59.203 a barrel in midday trading on the New York Mercantile Exchange, after rising as high as $59.99 a barrel in electronic trading. The contract on Monday slipped 28 cents to settle at $58.74 a barrel.

Oil hasn't traded above $59 a barrel since the first trading day of the year, Jan. 3, when crude fell from above $60 a barrel to settle at $58.32.

"The overall market sentiment is much more bullish now. The cold weather (in the U.S.) has helped the oil market find a floor and that has brought the investors back in," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Natural gas and crude oil prices edged up Monday on expectations of colder weather in major U.S. markets.

Light, sweet crude for March delivery rose 10 cents to $59.10 a barrel in early afternoon trading on the New York Mercantile Exchange. Brent crude for March delivery on the ICE Futures exchange inched up 2 cents to $58.43 a barrel.

Natural gas futures gained nearly 17 cents to $7.644 per 1,000 cubic feet.

"The weather is what's the most urgent, short-term issue here," said Tim Evans, an energy analyst at Citigroup Global Markets. "Over the weekend, the weather forecast became a lot colder for the six to 10 day period as well as the 11 to 15 day period."

Colder-than-normal temperatures blanketed the Northeast and Midwest on Monday and were expected to linger through Feb. 18, according to the National Weather Service. On Monday, temperatures registered in the single-digits and teens from Maryland to Maine, while many states in the Midwest were experiencing below zero temperatures with dangerous wind chills.

The Northeast accounts for 80 percent of U.S. heating oil consumption, while the Midwest is the bulk of the natural gas market. Heating oil futures rose half a cent to $1.6890 a gallon.

Oil prices had fallen as low as $49.90 a barrel last month after an unseasonably warm January.

Monday's gain in oil prices comes after Friday's rally that saw prices rise $1.72 to settle at $59.02 a barrel on winter weather concerns and supply worries driven by a second round of OPEC production cuts. That was the highest close since it finished at $61.05 on the last trading day of 2006.

Working gas in storage was 2,571 Bcf as of Friday, January 26, 2007, according to EIA estimates. This represents a net decline of 186 Bcf from the previous week. Stocks were 152 Bcf higher than last year at this time and 454 Bcf above the 5-year average of 2,117 Bcf. In the East Region, stocks were 283 Bcf above the 5-year average following net withdrawals of 120 Bcf. Stocks in the Producing Region were 165 Bcf above the 5-year average of 642 Bcf after a net withdrawal of 45 Bcf. Stocks in the West Region were 6 Bcf above the 5-year average after a net drawdown of 21 Bcf. At 2,571 Bcf, total working gas is above the 5-year historical range.