Oil Prices Advance Sharply

Petroleum futures prices advanced sharply Monday in trading on the New York Mercantile Exchange, buoyed by expectations that a weekly report would show continued tight supplies in the energy complex.

In its report last week, the American Petroleum Institute said supplies of crude oil, heating oil and leaded gasoline were limited, and traders anticipated that amounts quoted in the API inventory report coming out today “will again be very tight,” said Nauman Barakat, a petroleum analyst with Smith Barney.

Crude oil--which led the rally--was further supported by a flurry of buying prior to the expiration today of the November contract, Barakat said.

A late rally boosted soybean prices, while corn and wheat were mixed in trading on the Chicago Board of Trade.

Harvest-delaying weekend rains encouraged buying in the corn and soybean pits.

Rainfall amounts of two inches were common across the Corn Belt over the weekend, causing soggy soil conditions in major production areas, said Bob Lekberg, a grains analyst for Shearson Lehman Bros.