CRUDE oil prices rose yesterday on hopes that the Greek debt crisis is close to resolution, which would benefit the European economy. Traders continued to be concerned about tensions between Israel, the US and Iran.

Benchmark oil for April delivery gained 42 cents to settle at US$106.58 a barrel on the New York Mercantile Exchange. It hit a day high of US$107.20 earlier in the trading session.

In London, Brent crude rose US$1.32 to finish at US$125.44 a barrel on the ICE Futures exchange.

Commodities were in step with rising world equity markets, optimistic that Greece will be able to complete a bond swap plan with private investors aimed at cutting €107 billion (US$140 billion) off its national debt. Initial results are due to be announced early Friday.

Crude has risen from US$96 last month to near 10-month highs because of worries a military conflict over Iran's nuclear program would disrupt global oil supplies. The US and Europe have imposed sanctions while Iran has threatened to halt crude tankers passing through the Persian Gulf. Yesterday an Israeli official claimed satellite images back Israel's contention that Iran is developing a nuclear weapon.

In other energy trading in New York, natural gas prices fell sharply yesterday after spring-like weather blanketed much of the US, raising expectations that demand will remain weak. At the same time, supplies have stayed well above year-ago levels.

Natural gas fell 3 cents to finish at US$2.27 per 1,000 cubic feet in New York. The price has fallen about 27 percent this year and is at the lowest level in a decade.

Heating oil rose 5 cents to finish at US$3.27 per gallon and gasoline futures increased 3 cents to end at US$3.31 per gallon.

Source:shanghaidaily