February 23, 2003	Sunday	Zul Hijjah 21, 1423

NEW YORK, Feb 22: Oil prices jumped on Friday as traders, already edgy over a looming war with Iraq, were jolted by news of a gasoline barge explosion at an oil terminal on Staten Island, one of New York City’s five boroughs.

The blast in the narrow Arthur Kill waterway between Staten Island and New Jersey sent plumes of black smoke and flames into the sky. Gold prices, also keyed up with Iraq and world tensions, rose nervously but closed the day lower.

New York Mayor Michael Bloomberg said there was absolutely no evidence and reason to think that this is anything other than a very tragic industrial accident.

The explosion later appeared to be the result of a refueling accident.

At the New York Mercantile Exchange, crude oil for April delivery closed 84 cents higher at $35.58 a barrel. It earlier jumped to $35.95 or $1.21 higher on news of the blast. In London, April Brent crude ended 71 cents higher at $32.27.

Friday’s barge explosion hit already frayed nerves.

We have low stock cover and events like this makes the market more headline-sensitive, said Jim Ritterbusch, energy market analyst and president of Ritterbusch & Associates.

The blast occurred at 10:10 a.m. EST (1510 GMT) at an oil storage terminal 16 miles (25 km) southwest of Manhattan, where residents have been on edge and police have been on high alert since the Sept. 11, 2001, hijacked plane attacks destroyed the World Trade Center.

Exxon Mobil Corp., the owner of the oil terminal, said the barge contained 110,000 barrels of gasoline. Two employees were unaccounted for after the blast and at least one employee was killed, police said.

There was confusion in energy markets when the news broke as fire officials initially said the barge contained propane and shipping sources said it was loaded with heating oil.

NYMEX March heating oil closed 4.98 cents higher at $1.1085 a gallon, just below Thursday’s 23-year high of $1.135.

Forecasts of colder weather by next week in the Northeast, the nation’s biggest user of heating oil, added support.

NYMEX March gasoline closed 4.70 cents higher at $1.0128 a gallon. Some traders said Exxon Mobil was buying gasoline Gulf Coast, helping boost the day’s prices.

At the COMEX, April gold closed $1.30 lower at $351.80 an ounce after moving as high as $355 on the barge explosion.

The market stopped trading when everyone thought the explosion was in downtown Manhattan, said one gold broker.

COMEX March copper closed 2.55 cents higher at 77.75 cents a pound, trading at the highest levels in 10 days.—Reuters