Oil prices up and down

LONDON - Oil prices fell sharply Thursday after gyrating early on as traders reacted to reports that oil wells in southern Iraq were burning.

Prices initially jumped following reports from U.S. military officers with the 1st Marine Division that three wells had been "torched." But as it became evident that damage to Iraq's oil fields was minor and that U.S. forces were encountering little resistance, prices declined steadily in London and New York.

At the New York Mercantile Exchange, April contracts of U.S. light, sweet crude plunged $1.27 per barrel to close at $28.61. The April contract peaked at $30.60 on Thursday.

Energy Secretary Spencer Abraham, meanwhile, said Thursday he's confident there are adequate oil supplies available to the United States to compensate for any losses of crude oil as a result of the war in Iraq. He said the Bush administration will use the nation's emergency oil reserves if needed.

Airlines cancel flights

CAIRO, Egypt - Airlines responded to the start of war in Iraq by canceling flights Thursday.

The German carrier Lufthansa canceled all flights to Tel Aviv, Israel; Amman, Jordan; Beirut, Lebanon; Kuwait; and Saudi Arabia for Thursday and today.

Air France suspended flights to Tel Aviv until Monday. British Airways, which suspended service to Tel Aviv and Kuwait earlier, canceled Thursday's flight to Beirut, as did several other airlines, airport officials said.