Oil prices rose on Monday after Greece approved austerity measures needed to acquire more aid and avoid default, sparking another round of investor optimism, and as tensions between Israel and Iran reinforced concerns about supply disruptions.
U.S. crude futures trading resumed post-settlement after electronic trading of oil futures was halted for more than an hour on the New York Mercantile Exchange because of an unspecified technical issue.
The glitch in electronic trading occurred in the last half hour of the open outcry floor session and did not stop floor trading.
Brent March crude rose 62 cents to settle at $117.93 barrel, reaching $118.61 to match Friday's intraday peak. The Brent March contract expires on Tuesday.
U.S. March crude rose $2.24 to settle at $100.91 a barrel, having pushed through the 20-day and 50-day moving averages. U.S. March crude options expire on Tuesday.
Brent's premium to U.S. crude narrowed to $17.02 a barrel, pulling back after ending Friday at $18.64 based on settlements.
"Crude oil prices continue to draw support from a familiar set of factors: progress on Greek sovereign debt, risk of supply disruption linked to sanctions against Iran, and refinery outages that are seen limiting gasoline supply," Tim Evans, energy analyst for Citi Futures Perspective, said in a note.
Total crude trading volumes were below 30-day averages for Brent and U.S. crude with less than an hour of post-settlement trading remaining on Monday.
Weakness in gas oil futures pulled Brent off highs, as Europe's recent deep freeze eased and uncertainty about economic prospects for the euro zone lingered.
U.S. heating oil futures slipped, hemmed in by another below-normal weekly heating demand forecast for the country, with heating oil demand alone expected to be 10.7 percent below normal.
U.S. gasoline futures rose 1.26 percent as refinery closures and anticipated spring maintenance are expected to limit supply and as investor focus turns from the winter heating season toward an approaching summer driving season.
EURO ZONE UNCERTAINTY
The euro rose against the dollar after Sunday's approval by Greece's parliament of drastic cuts in wages, pensions and jobs, but concerns about hurdles still ahead as Greece tries to avoid a disorderly default limited gains.
U.S. stocks rose, led by banks supported by developments in Greece.
The European Union on Monday gave Greece's government until Wednesday to specify how 325 million euros of the 3.3 billion euros in budget savings demanded will be achieved.
IRAN, MIDDLE EAST TENSIONS
Israel accused Iran and its Lebanese ally Hezbollah of being behind twin bomb attacks that targeted Israeli embassy staff in India and Georgia, wounding four people.
Iran denied involvement, while Hezbollah declined comment, but the incident amplified tensions between the West and Iran over Tehran's nuclear program.
China has urged Iran to cooperate more closely with the U.N.'s International Atomic Energy Agency and rejoin talks on its nuclear program.
Assistant Foreign Minister Ma Zhaoxu said the purpose of his visit to Tehran was to "candidly discuss" the Iran nuclear issue with Deputy Secretary of Iran's Supreme National Security Council Ali Baqeri.
China's Foreign Ministry on Monday backed Arab League mediation in Syria but offered no clear sign of support for the League's call to send in peacekeepers to halt the Syrian government's violent crackdown on opposition groups.
U.S. OIL INVENTORIES
U.S. crude oil inventories were expected to have risen last week when industry and government provide their latest weekly supply snapshots, according to a Reuters survey of analysts on Monday.
Distillate stockpiles were expected to be lower and gasoline stocks up, the survey showed.
Industry group the American Petroleum Institute will release its inventory data on Tuesday at 4:30 p.m. EST (2130 GMT), with the government report following on Wednesday.
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