U.S. ENERGY FUTURES SETTLE WITH MODEST GAINS
U.S. energy futures posted modest gains
because of a supply squeeze in physical North Sea Brent crude
oil
and escalation of the Iran/Iraq war, traders and analysts said.
    May crude closed 17 cts higher to 18.84 dlrs.
    "Energy futures were led by the 15-day forward Brent Crude
market in Europe, said Robert Murphy, account executive at E.F.
Hutton and Company Inc, adding, "crude futures could jump above
19 dlrs a barrel but will not remain there long if products are
not strong," he added.
    April Brent rose as high as 19.57 dlrs a barrel today.
    Traders said reports that Iran opened a new southern front
and Iraq attacked Iranian oil fields were also supportive.
    Murphy said tonight's American Petroleum Institute report
will need to show drawdowns in gasoline and distillate of two
to four mln barrels each to support firmer crude prices.
    "There is a lot of gasoline around," Murphy said.
    Following crude futures, May gasoline closed 0.33 cent
higher at 53.27 cts a gallon after trading 8,700 contracts. May
heating oil traded only 7,200 contracts and was up 0.45 cent at
49.24 cts.
 Reuter
