SAN FRANCISCO -- Crude-oil futures fell Tuesday morning after the Organization of the Petroleum Exporting Countries' meeting yielded no surprises and members left their output quotas unchanged, but growing tensions surrounding Iran's nuclear program put a floor under prices.

"The OPEC meeting contained no major surprises to the energy markets," said Jim Wyckoff, an analyst at online resource TradingEducation.com. Even so, the "decision to leave total OPEC crude oil output unchanged does give the bears some ammunition in the near term." Crude for March delivery recently was down 35 cents at $68 a barrel on the New York Mercantile Exchange after having briefly traded below the $68 a barrel a level in electronic trade. February unleaded gasoline lost 1.19 cents to $1.763 a gallon and February heating oil fell 0.88 cent to $1.825 a gallon. March will become the lead-month contract at the session's close. March unleaded gasoline was down 1.96 cents at $1.8225 and March heating oil fell 0.47 cent to $1.862. OPEC agreed to leave its output unchanged at 28 million barrels of oil a day, Libyan oil minister Fathi Hamed Ben Shatwan said, according to the Associated Press. The decision was in line with market expectations following a wide number of comments from OPEC officials over the weekend. Qatari oil minister Abdullah bin Hamad al-Attiyah said a cut in output would be discussed at the March meeting. "OPEC has done well responding to prices rather than expected inventory builds, and that is likely to continue for now," said Michael Lynch, president of Strategic Energy & Economic Research. "Even suggesting a cut in production would seem to be an aggressive move, given current near-record prices," he said, "so they will attempt to assure consumers that they are working to reduce them by maintaining production in the face of a potentially large surplus in the second quarter." Also on traders' radars Tuesday were expectations for Wednesday's U.S. petroleum inventory updates from the Energy Department and American Petroleum Institute. Most analysts were looking for across-the-board climbs. Analysts polled by Platts predict that crude supplies rose 1.7 million barrels during the week ended Jan. 27. Fimat analysts expect an increase of 1.6 million. The Platts survey also showed market expectations for a climb of 1.3 million barrels for motor gasoline supplies and a rise of 900,000 barrels for distillate stocks, which include heating oil. Fimat is looking for a rise of 1.4 million for gasoline and an 800,000-barrel increase in distillates. Elsewhere in the energy complex, natural-gas futures headed lower, retreating from Monday's over 10% climb. March natural gas was down 16.9 cents at $9.22 per million British thermal units. It closed Monday at a three-week high. UBS expects Thursday's weekly report from the Energy Department to show a decline of 80 billion to 90 billion cubic feet for the week ended Jan. 27. That's well below the decline of 188 billion for the same time a year earlier and the five-year average fall of 172 billion, according to data from the brokerage. PIN/MARKETWATCH
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