Oil extends gains above US$101 on Iran worry

by **hlk** Mon 05 Dec 2011, 19:12

TOKYO, Dec 5 (Reuters) U.S. crude futures extended gains above $101 on Monday, helped by firmer equities markets, geopolitical tensions over Iran's nuclear programme and encouraging economic signs in the United States.

FUNDAMENTALS

* NYMEX crude for January delivery was up 57 cents at $101.53 a barrel by 0006 GMT, after hitting a peak of $101.73 earlier, the highest since $101.75 on Nov. 30. On Friday, it settled up 76 cents at $100.96, wrapping the week up 4.3 percent, after U.S. data showed the U.S. jobless rate dropped to 8.6 percent from 9 percent, raising hopes about the outlook for the U.S. economic recovery.

* London Brent crude for January delivery was up 58 cents at $110.52 a barrel, after settling up 95 cents on Friday.

* Iran warned the West on Sunday that any move to block its oil exports would more than double crude prices with devastating consequences on a fragile global economy. "As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel," Foreign Ministry spokesman Ramin Mehmanparast said in a newspaper interview.

* Global oil market supply is sufficient, OPEC member Qatar's energy minister said on Sunday. "The prices are determined by the market and currently the supply is enough," Mohammed alSada told reporters on the sidelines of the World Petroleum Congress.

* Libyan oil production should reach about 950,000 barrels per day by the end of this year and 1.3 million bpd by the first quarter of 2012, OPEC SecretaryGeneral Abdullah alBadri said on Sunday.

* Speculators raised their net long positions in U.S. crude oil futures and options positions in the week to Nov. 29, data from the U.S. Commodity Futures Trading Commission (CFTC) showed on Friday.

MARKETS NEWS

* Dow and S&P index futures opened higher on Sunday, suggesting the previous week's rally the biggest in almost three years could be extended in the coming week.

* Japan's benchmark Nikkei average opened up 0.6 percent at 8,697.78 on Monday.

* The euro gained slightly on Monday, after last week's 0.8 percent rise, as markets are hopeful the EU will have taken a step towards fiscal union by Friday.