Oil prices marched to new highs just shy of $45 a barrel Monday after an Iraqi oil official said production ceased at key southern oil fields, meaning the market could lose more than 1.5 million barrels a day by the end of the week. Buying was also fueled by the renewed threat of a supply disruption in Russia, analysts said, as the embattled oil giant Yukos was dealt more bad news. Light crude for September delivery rose by 89 cents to $44.84 per barrel on the New York Mercantile Exchange. On London's International Petroleum Exchange, Brent crude futures gained 93 cents to $41.56 per barrel. «I think to a large extent the market has factored in the fact that Iraqi production is going to go in and out,» said Peter Beutel, president of the energy consulting firm Cameron Hanover Inc. in New Canaan, Connecticut. «But supplies are so tight and demand keeps growing.» A senior official with Iraq's oil company, who spoke on condition of anonymity, said the southern oil fields stopped pumping oil Monday after militants loyal to Shiite cleric Muqtada al-Sadr threatened to target the oil infrastructure in Basra. Iraqi Oil Ministry spokesman Assem Jihad said he could not confirm the shutdown. --More 2259 Local Time 1959 GMT
