Venezuela threat sends crude prices higher

Crude oil prices rose Monday after Venezuelan President Hugo Chavez threatened to stop selling oil to the United states after a court order last week froze assets of Venezuela’s state-owned oil company after ExxonMobil (NYSE: XOM) brought action to receive compensation for losses incurred when the South American nation nationalized some oil projects there.

New violence against oil facilities by militants in Nigeria which killed one sailor and injured another aboard a vessel escorting petroleum industry ships added to upward pressures on prices.

In addition, power outages at two refineries, one in Delaware and the other in Louisiana, helped prices higher even though both refineries were reported to be in the process of starting operations again.

West Texas Intermediate for March delivery added $1.80 to $93.57 per barrel while March contracts for Brent crude gained $2.19 to $94.13 per barrel.

Nymex March gasoline was up 5 cents to $2.40 per gallon while March heating oil also gained 5 cents, to $2.61 per gallon, and March heating oil added 22 cents to $8.52 per million British thermal units.