Oil jumps after Iranians seize Iraqi oil field

NEW YORK -- Crude prices spiked briefly Friday after Iranian troops crossed into Iraq and seized an oil field.

Iraq's Deputy Foreign Minister Mohammed Haj Aziz said Iranian soldiers surrounded a well Thursday night. He did not know who was in control of the area now.

Benchmark crude for January delivery added 53 cents to $73.18 a barrel on the New York Mercantile Exchange. Most of the trading already has switched to the February contract, which climbed fell 10 cents to $74.18 a barrel.

While there are enormous supplies of crude now because of the global economic downturn, a conflict between Iran and Iraq would certainly crimp supply.

As things heated up in the Middle East, they cooled off in the U.S.

Energy prices increased all week as frigid temperatures blanketed the Midwest and Northeast. Government reports said that the country's oil, natural gas and heating oil supplies have all dropped more than expected as homes and businesses kept furnaces on high.

Next week, investors will be pay close attention to the Organization of Petroleum Exporting Countries' meeting Tuesday in Luanda, Angola. Leaders of the 12-member group have suggested the will leave production at current levels.

At the pump, retail gas prices extended their two-week slide, giving up a tenth of a penny overnight to a new national average of $2.589, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded is 4.3 cents cheaper than a month ago, but it's still 91.9 cents more expensive than last year.

In other Nymex trading in January contracts, heating oil rose less than a penny to $1.9579 while gasoline rose 1.56 cents to $1.8676 a gallon. Natural gas increased 3.2 cents to $5.80 per 1,000 cubic feet.

In London, Brent crude for February delivery added 34 cents to $73.71 a barrel on the ICE Futures exchange.