Oil Jumps Above $40 on Gaza Conflict

By George Jahn

Vienna, Austria -- Tensions generated by a widening conflict between Israel and Palestinian militants sent crude prices up sharply to above $40 a barrel Monday, with gasoline and heating oil also making sizable gains.

Prices also were supported by indications that key OPEC members were acting on commitments to cut back production, in line with a decision earlier this month to take a daily 2.2 million barrels off the market.

Light, sweet crude for February delivery rose $2.51 to $40.22 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. The contract on Friday rose $2.36 to settle at $37.71. ...