NEW YORK (Dow Jones)--Crude futures are higher Monday, supported by geopolitical tensions, a cold snap in the U.S. and Europe, and oil supply outages. Light, sweet crude for January delivery recently traded 39 cents, or 0.5%, higher at $73.75 a barrel on the New York Mercantile Exchange. The contract expires today. The most actively traded February contract recently traded 69 cents, or 0.9%, higher at $75.11 a barrel. Brent crude on the ICE futures exchange traded 72 cents, or 1%, higher at $74.47 a barrel. Traders had set aside some of Friday's concerns about the occupation of an Iraqi oil well by Iran, after Iranian troops withdrew from the well, situated in a disputed area on the two countries' borders. The well, though, had not yet been developed, according to oil ministry spokesman Assem Jihad said. "It's a contentious area already, and the occupation was more symbolic than anything as the well is not producing," said Tim Jennings, vice president of Vantage Trading in New York. "It was saber-rattling." But Iranian troops still remained within Iraq's borders Monday, the AFP reported, leading oil traders to keep an eye on the situation for any rise in geo-political tensions between Iran and other countries over the incident. The cold snap that brought heavy snow to the U.S. northeast and across Europe was also boosting oil. "Weather and geo-politics are supporting oil even in the face of overwhelming supply and a glut of spare production capacity," Phil Flynn, analyst with PFG Best in Chicago, said in a note to clients. Supply issues were also underpinning some of oil's gains after Iraqi oil exports from the Turkish port of Ceyhan were halted over the weekend due to sabotage on the northern pipeline. This was the second attack on the pipeline in a month. Nigeria's main rebel group also alledged that it had attacked Royal Dutch Shell's (RDSA) oil pipeline in Abonemma in southern Rivers state Saturday. The expiration of the January contract amid thin trading conditions due to a shortened holiday trading week could add some volatility to the oil markets Monday, noted Jennings. Looking ahead, the Organization of Petroleum Exporting Countries will meet in Luanda, Angola, on Tuesday and there is expected to be no change in production quotas. "There is a consensus that there is no change (in output levels)," the secretary-general of the cartel, Abdalla Salem el-Badri, told reporters in Luanda Monday. Asked whether the group would lift production in 2010, el-Badri said this "was not on our radar at this time." Front-month January reformulated gasoline blendstock, or RBOB, recently traded 1.81 cents, or 1%, higher at $1.9129 a gallon. January heating oil recently traded 2.66 cents, or 1.4%, higher at $1.9833 a gallon.

Source