New York Crude Oil Futures Closed up 2.4%, Approaching $60

U.S. crude oil futures closed sharply higher on Friday as investors covered short positions ahead of the U.S. long weekend and the U.S. warned that the situation in oil-producing Nigeria was deteriorating.

After U.S. President Bush asserted at a press conference this week that Iran had provided weapons to Iraqi militants, the recent deterioration of the geopolitical situation has once again become the focus of market attention.

Eric Wittenauer, an energy analyst at U.S. brokerage firm AGE Edwards in St. Louis, said that amid continued geopolitical tensions, there will be short covering in the crude oil market before the long weekend.

Edwards further pointed out that the turbulent situation in Nigeria and the cold weather have also contributed to the rise in oil prices. Investors expect heating oil demand may increase again.

The U.S. Consulate in Nigeria issued a warning that militants were planning to carry out armed attacks in Nigeria, but gave no further statement.

March crude oil futures on the New York Mercantile Exchange (NYMEX) closed up $1.41, or 2.4%, at $59.40/barrel. It once hit a high of $59.45/ounce during the session and the intraday low was $57.85/barrel.

Analysts pointed out that the support of NYMEX March crude oil futures price is located at US$57/barrel, and the resistance is located at US$60/barrel. This week, New York Mercantile Exchange (NYMEX) crude oil futures and heating oil futures fell for the first time in four weeks, reflecting the end of winter. Gasoline futures rose for a fourth consecutive week, indicating that investors are beginning to focus on gasoline supplies ahead of the U.S. summer driving travel peak.