* Greek austerity measures supportive to oil
* Israel/Iran tension increases after bombings
* CME Group halts trading
* Coming up: Brent March crude contract expires Tuesday
(Recasts, updates prices, market activity)
NEW YORK, Feb 13 (Reuters) - Oil prices rose
on Monday after Greece approved austerity measures
needed to acquire more aid and avoid default, sparking another
round of investor optimism, and as tensions between Israel and
Iran reinforced concerns about supply disruptions.
U.S. crude futures trading resumed post-settlement after
electronic trading of oil futures was halted for more than an
hour on the New York Mercantile Exchange because of an
unspecified technical issue.
The glitch in electronic trading occurred in the last half
hour of the open outcry floor session and did not stop floor
trading.
Brent March crude rose 62 cents to settle at $117.93
barrel, reaching $118.61 to match Friday's intraday peak. The
Brent March contract expires on Tuesday.
U.S. March crude rose $2.24 to settle at $100.91 a
barrel, having pushed through the 20-day and 50-day moving
averages. U.S. March crude options expire on Tuesday.
Brent's premium to U.S. crude
a barrel, pulling back after ending Friday at $18.64 based on
settlements.
"Crude oil prices continue to draw support from a familiar
set of factors: progress on Greek sovereign debt, risk of supply
disruption linked to sanctions against Iran, and refinery
outages that are seen limiting gasoline supply," Tim Evans,
energy analyst for Citi Futures Perspective, said in a note.
Total crude trading volumes were below 30-day averages for
Brent and U.S. crude with less than an hour of post-settlement
trading remaining on Monday.
Weakness in gas oil futures pulled Brent off highs,
as Europe's recent deep freeze eased and uncertainty about
economic prospects for the euro zone lingered.
U.S. heating oil futures slipped, hemmed in by
another below-normal weekly heating demand forecast for the
country, with heating oil demand alone expected to be 10.7
percent below normal.
U.S. gasoline futures rose 1.26 percent as refinery
closures and anticipated spring maintenance are expected to
limit supply and as investor focus turns from the winter heating
season toward an approaching summer driving season.
EURO ZONE UNCERTAINTY
The euro rose against the dollar after Sunday's approval by
Greece's parliament of drastic cuts in wages, pensions and jobs,
but concerns about hurdles still ahead as Greece tries to avoid
a disorderly default limited gains.
U.S. stocks rose, led by banks supported by developments in
Greece.
The European Union on Monday gave Greece's government until
Wednesday to specify how 325 million euros of the 3.3 billion
euros in budget savings demanded will be achieved.
IRAN, MIDDLE EAST TENSIONS
Israel accused Iran and its Lebanese ally Hezbollah of being
behind twin bomb attacks that targeted Israeli embassy staff in
India and Georgia, wounding four people.
Iran denied involvement, while Hezbollah declined comment,
but the incident amplified tensions between the West and Iran
over Tehran's nuclear program.
China has urged Iran to cooperate more closely with the
U.N.'s International Atomic Energy Agency and rejoin talks on
its nuclear program.
Assistant Foreign Minister Ma Zhaoxu said the purpose of his
visit to Tehran was to "candidly discuss" the Iran nuclear issue
with Deputy Secretary of Iran's Supreme National Security
Council Ali Baqeri.
China's Foreign Ministry on Monday backed Arab League
mediation in Syria but offered no clear sign of support for the
League's call to send in peacekeepers to halt the Syrian
government's violent crackdown on opposition groups.
U.S. OIL INVENTORIES
U.S. crude oil inventories were expected to have risen last
week when industry and government provide their latest weekly
supply snapshots, according to a Reuters survey of analysts on
Monday.
Distillate stockpiles were expected to be lower and gasoline
stocks up, the survey showed.
Industry group the American Petroleum Institute will release
its inventory data on Tuesday at 4:30 p.m. EST (2130 GMT), with
the government report following on Wednesday.
(Additional reporting by Gene Ramos in New York, Simon Falush
in London and Jessica Jaganathan in Singapore; Editing by Dale
Hudson and David Gregorio)
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