Iran, Nigeria issues send oil higher

Crude oil prices were higher on Monday after US President George W. Bush made comments during an official visit to the Middle East which renewed worries of disruptions of oil supplies from Iran.

Mr. Bush accused Iran of backing militants and threatening the security of the world and asked that US allies in the Persian Gulf region to confront Iran over their behavior.

The aftermath of a pipeline attack in Nigeria caused Shell (LSE: RDSA, RDSB) to declare force majure on exports of crude carried through that line, further supporting prices.

Other issues tending to support higher prices included cooler weather in the Northeast US that will increase demand of heating oil and a weaker dollar.

West Texas Intermediate crude for February delivery had added $1.46 to $94.15 per barrel just before the close of floor trade on the New York Mercantile Exchange, while Brent crude was up $1.86 to $92.93 per barrel on the ICE Futures Europe exchange in London.

Nymex February gasoline and heating oil each added 4 cents, to $2.36 per gallon and $2.58 per gallon respectively, while March natural gas was 9 cents higher to $8.27 per million British thermal units.