Energy Sector Roundup: Iraq Drives Oil

The inventory level was above the five-year average of more than 1.24 trillion cubic feet in underground storage, but below last year's storage level of about 1.52 trillion cubic feet, according to the government data.

Monday marks the official end of the heating season, which should end with fairly chilly weather in the Northeast and Midwest, according to forecasters.

Calyon Securities analyst Carin Denhe Kiley said this past winter was 3.4 percent colder than the five-year average, based on heating-degree days.

Looking ahead to the summer cooling season, Kiley said private forecasters expect June to be warmer than normal along the East Coast and cooler than normal in the middle of the country except Texas.

April natural gas futures rose by 0.6 cent to settle at $9.578 per 1,000 cubic feet.

Marathon Sees Production and Reserves Rising

At a meeting with Wall Street analysts in New York, Marathon Oil Corp. President and Chief Executive Clarence P. Cazalot Jr. said Marathon expects its crude oil and natural gas production to increase at least 8 percent in 2008 and to grow roughly 7 percent over the next five years.

Cazalot also sees proved reserves rising by about 15 percent through 2012.

Marathon said the $3.2 billion expansion of the company's Garyville, La., refinery was 38 percent complete, and was on time and on budget. The company is also upgrading its Detroit refinery to handle more heavy crude from the Athabasca Oil Sands Project in Alberta, Canada. Marathon has a 20 percent stake in that project.

Marathon estimates capital and exploration spending will be about $18.5 billion through 2012.