--Oil prices holding at levels reached last week --If Ben Bernanke is negative about U.S. economy, oil prices can fall, analyst says --Tensions over Iran's nuclear program high on the oil markets' agenda By Konstantin Rozhnov LONDON--Crude-oil futures were mixed Monday, holding at levels reached in a rally late last week, as market participants await U.S. Federal Reserve Chairman Ben Bernanke's testimony to Congress Tuesday. Oil prices can fall if Mr Bernanke is more negative about the U.S. economy, the world's largest oil consumer, than has been indicated so far, said Thina Saltvedt, a senior oil-market analyst at Nordea Bank Norge. At 1001 GMT, the front-month August Brent contract on London's ICE futures exchange, which expires later Monday, was 15 cents, or 0.2%, higher at $102.55 a barrel. The front-month August contract on the New York Mercantile Exchange was trading down 38 cents, or 0.4%, at $86.72 per barrel. "Prices may have found support in the prevailing uncertainty that surrounds the Iran issue, as Teheran ostensibly refuses to give in to sanctions," JBC Energy said in a note. The Iran issue will be very high on the oil markets' agenda going forward as negotiations over Iran's nuclear program seem to have stalled, said Ms. Saltvedt. "Despite an oil pipeline having been put into operation in the United Arab Emirates, a [Strait of Hormuz] blockade would still cut large parts of the oil production in the Gulf states off from the world market, which justifies a risk premium on the oil price," Commerzbank said in a note. Oil prices have also found support in China's plans for economic stimulus measures, said Commerzbank. China is the world's second-largest oil consumer after the U.S., and weaker-than-expected macro-economic numbers from the country have pressured crude prices. Meanwhile, supply disruptions in the North Sea have also supported Brent. "Brent is receiving additional specific support from production interruptions resulting from the Norwegian strike and from what is rapidly becoming the chronic unreliability of supply from the Buzzard field," PVM said in a note. Last week, the August Brent premium to Nymex crude moved from $13.36 a barrel to $14.99 a barrel. "It is a sharp reminder that focusing on the strengths and weaknesses of one grade without similar attention to the other is a recipe for a bad weekend," PVM said. At 1001 GMT, the ICE's gasoil contract for August delivery was down $1.75, or 0.2%, at $878.00 per metric ton, while Nymex gasoline for August delivery was 30 points, or 0.1%, up at $2.8191 per gallon. -Write to Konstantin Rozhnov at konstantin.rozhnov@dowjones.com

Source