THE WALL STREET JOURNAL: Oil Surges to Four-Month High Amid Worries About Supplies: "Royal Dutch Shell PLC confirmed the death of a second catering contractor in an assault by armed militants on an oil platform in southern Nigeria, raising the death toll in the latest string of attacks to 14.: Friday 20 January 2006

Crude-oil futures in New York climbed about a dollar, settling at a four-month high near $67 a barrel as deep-pocketed commodity funds snapped up contracts amid supply fears.

"The speculators have been negative on the market until recently, so there's more than enough room for them to come back into the market and push prices higher," said Jes Black, a hedge-fund manager for Black Flag Capital Partners LLC in Hoboken, N.J.

While weekly inventory data released yesterday revealed U.S. crude and product stocks at above-average levels, operating rates at refineries fell to a 10-week low and worries about oil supplies from Nigeria and Iran lingered.

Benchmark light, sweet crude-oil futures for February rose $1.10 to settle at $66.83 a barrel on the New York Mercantile Exchange, marking the highest closing price since Sept. 19.

In London, Brent blend-crude futures for March settled at $65.23 a barrel, up $1.04 on Intercontinental Exchange Futures.

Nymex heating-oil futures for February rose 27 cents to settle at $1.7760 a gallon, while Nymex gasoline for the same month settled at $1.7969 a gallon, up 4.14 cents.

Traders kept close watch over developments in Nigeria, where about 10% of oil production remained sealed off following attacks on oil infrastructure.

Royal Dutch Shell PLC confirmed the death of a second catering contractor in an assault by armed militants on an oil platform in southern Nigeria, raising the death toll in the latest string of attacks to 14.

Jitters also persisted over an impasse with Iran after the country ignored objections from the U.S. and Europe and last week reopened nuclear-research facilities in a move that some fear could pave the way for the manufacture of nuclear weapons.

Nigeria is a major source of light, sweet crude for the U.S., while Iran is the second-largest producer in the Organization of Petroleum Exporting Countries.

In other commodity markets:

WHEAT: Futures on the Kansas City Board of Trade rose, supported by persistent dryness in the central pLong-range forecasts by the National Weather Service call for the dryness to last until April, stressing dormant crops.

Further, news of Iraqi interest in hard red winter wheat, the class of wheat traded in Kansas City, Mo., and worries about wheat-crop damage due to bitterly cold temperatures in Russia lifted prices.

KCBT March wheat gained 10.25 cents to $3.83 a bushel.

SUGAR: Prices on the New York Board of Trade rose to 15-year highs, supported by technical buying as the market reached new contract highs.

Middle Eastern and Chinese demand for physical sugar was noted.

The March contract on Nybot rose 0.42 cent at 16.12 cents a pound.

Write to Leah McGrath Goodman at leah.goodman@dowjones.com