By Alan Fein

(AXcess News) New York - Heightened geopolitical threats due to Iran's long-range missile tests pushed crude oil futures higher Wednesday morning.  An unexpected drop in US stocks last week added to the buy pressure.

Crude oil futures rose at the open of contract trading in New York on Wednesday after news of heightened threats in the Middle East occurred following a test of nine long-range missiles in Iran.  Oil futures had seen two previous days of multi-dollar price declines but that ended this morning.

The government's weekly EIA supply report also showed that US crude oil stocks fell more than expected last week, adding to the commodity trading pressure in New York.

The EIA reported that supplies of crude oil fell 5.9 million barrels last week, or 2%.  Energy pundits had on average estimated a drop of 2 million barrels.  The difference was more than the market was looking to see.

Crude oil futures on the New York Mercantile Exchange for August contract delivery rose $1.26 a barrel to $137.30 after trading at a high of $141.37 earlier this morning.

Gasoline futures for September delivery rose 1-cent to $3.37 a gallon.

The government said that US supplies of gasoline rose last week by 900,000 barrels and now stand 6.2 million barrels above year-ago levels.  Still, consumers haven't seen prices easing and according to AAA, the national average price at the pump Wednesday stood at $4.10 a gallon with no relief in sight.

Major oil stocks were trading down early Wednesday afternoon with Chevron Corp. (NYSE: CVX) off 31 cents at $95.48,  ExxonMobil (NYSE: XOM) shares were down 12 cents at $85.82,  Royal Dutch Shell (NYSE: RDS-B) shares were off 85 cents at $77.15 and BP PLC (NYSE: BP) shares were down 59 cents at $65.28.

Shares of Petrobras Energia (NYSE: PZE) bucked the downward trend, rising 49 cents, or 4.5%, to $11.38.  Petrobras received favorable views by the energy sector as an emerging market oil and gas company.