London crude oil futures soared on Monday on fears of possible OPEC cuts and expectations of a cold spell in the US Northeast. Trading volumes were thin as the New York Mercantile Exchange was closed due to the Presidents Day holiday.

"Crude is just juggling back and forth here around the $50 level, and it would take little to push it through," said Kevin Kerr, president of Kerr Trading International.

"The dynamite blast this week shows just how on edge this market remains, even in the face of this week’s bearish oil numbers. Colder temps are still predicted and winter is far form over," he said. He was speaking of the explosion in Beirut, resulting in the death of Rafik al-Hariri, Lebanon’s ex-premier.

The worries of possible OPEC production cuts were aggravated by speculations of a tighter market in 2005 as demand continues to rise at a vigorous tempo. The market is awaiting Chinese economic data.

OPEC decision to reduce quotas that may be taken on March 16 at the ministers’ meeting in Iran may be reflected on the 8.5% stock surplus in the US.

The market has been propped up by the projections of a cold spell in the US Northeast that can step up demand for heating oil as the heating season wanes.

In Iraq, supply has been hampered by sabotage on the export pipeline to Turkey where oil transportation was disrupted last Tuesday and has not resumed since.