UPDATE 7-Oil hits one-month high. Venezuela threatens halt

By Richard Valdmanis

NEW YORK, Feb 11 (Reuters) - Oil prices jumped more than $2.00 to their highest levels in a month after Venezuela threatened to halt sales to the United States over an intensifying legal battle between the OPEC nation and Exxon Mobil Corp (XOM.N: Quote, Profile, Research).

Venezuela is the fourth biggest supplier of crude to the United States, and energy analysts have said that any interruption to shipments could tighten up inventories and push prices higher.

"While Chavez has not followed through on previous threats to stop U.S. oil supplies, his volatile personality and the uncertainty of his next action may continue to keep participants on edge," John Kilduff, senior vice president at MF Global, said in a research note.

U.S. crude CLc1 gained $2.50 to $94.27 a barrel by 1830 GMT, after climbing more than $3 Friday. Prices hit an intraday high of $94.72 a barrel, the highest since Jan. 10. London Brent rose $2.35 to $94.29.

Venezuelan President Hugo Chavez made the threat Sunday after Exxon Mobil won a court decision freezing $12 billion of Venezuelan assets to step up Exxon's push for compensation from a nationalized oil project.

"If you freeze us, if you really manage to freeze us, if you damage us, then we will hurt you. Do you know how? We are not going to send oil to the United States, Mr. Bush, Mr. Danger," Chavez said on his weekly TV show.

Chavez has frequently issued conditional threats to stop shipments to the United States amid clashes with the White House, but has never followed through with a halt.

A U.S. State Department spokesman said Monday he expected Venezuela to respect international law.