Commodities : Energy Futures Advance

Energy futures moved sharply higher Thursday, reacting to what analysts called war jitters emanating from the Middle East.

On other markets, cattle futures fell as much as the limit lower, grains and soybeans fell, and precious-metals futures rose.

A news report that Anglican Church envoy Terry Waite had been shot trying to escape from captivity in Lebanon sent energy futures, particularly heating oil, up steeply at the New York Mercantile Exchange, said Edward Dellamonte, an analyst in New York with Prudential-Bache Securities Inc.

While there was no early confirmation of the report, “it was very, very detailed down to the type of gun that was used,” making it believable, he said.

Also, some support for oil prices came from the presence of the American fleet off the coast of Lebanon.

Both incidents, Dellamonte said, stirred fears of an invasion by American troops, expansion of hostilities in the Middle East and possibly the disruption of the flow of oil.

There was another unconfirmed report in the market that American forces had landed south of Beirut, said Peter Beutel, an analyst with Elders Futures Inc.