Monday, 30 December, 2002, 09:36 GMT - Oil prices have soared to a two-year high as fears of a United States-led war with Iraq and a national strike in Venezuela have disturbed the markets.

The speculation over a possible war with Iraq is driving all this buying

New York oil trader

The oil price broke through $33 (£20.5) per barrel on Monday, the highest price since December 2000.

Output from Venezuela, the world's fifth largest oil exporter, has been choked off by the month-long national strike.

The price of light crude for delivery in February rose 1.4% to $33.17 a barrel on Monday morning in out-of-hours electronic trading on New York's Nymex market, a two-year high.

Troop movements

In London, the price of benchmark Brent crude rose 44 cents to $30.60 a barrel.

The US government ordered more troops, war planes and naval vessels to move into to the Arabian Gulf over the weekend.

Analysts believe February or March are the most likely months for the battle of words between the US and Iraq to turn into a shooting war. Remainder

-- Anonymous, December 30, 2002

Answers

For those who weren't with us when we discussed the ramifications of surging oil prices way back when, please bear in mind higher prices affect more than just gasoline.

Think of all the other products fueled by oil: power to your home, plastic goods, cleaning products--anybody want to add to the list?

-- Anonymous, December 30, 2002

basically everything. Oil fuels the factories, the electric plants, etc. Even nuclear plants have a need for oil in some form or other.

The cost of living is going up across the board. The question is, how high is too high to live?

-- Anonymous, December 30, 2002

U.S. Oil Above $33 as War Clouds Darken

Reuters Monday, December 30, 2002; 10:39 AM

NEW YORK (Reuters) - Oil prices charged higher again Monday as traders bet on a U.S. attack against Iraq early next year and as supplies from OPEC nation Venezuela stayed choked off by a strike now in its fifth week.

U.S. light crude futures set a new two-year high in early trade of $33.45 a barrel up 73 cents from Friday. London Brent crude added 69 cents to $30.85 a barrel, a 15-month high.

"Oil and politics are a volatile combination and we have two separate issues confronting the oil market at the moment," said Peter Gignoux, head of the London energy desk at Schroder Salomon Smith Barney.

Oil has risen more than $5 in December and prices are now more than $10 higher than at the start of 2002. Concerns are growing that costly energy bills could stifle global economic recovery.

Washington at the weekend ordered more U.S. troops, aircraft and ships to head to the Gulf from January in preparation for a possible war against Baghdad.

Secretary of State Colin Powell said Washington had not yet decided whether to attack Iraq to force it to disarm weapons of mass destruction, but was taking "prudent action" in readiness.

Dealers think an attack could start soon after Jan. 27 when the chief U.N. weapons inspector Hans Blix delivers a report to the Security Council on the progress of his inspections teams.

-- Anonymous, December 30, 2002

Rest of above article

-- Anonymous, December 30, 2002

Does this mean that I should go buy another two pairs of running shoes?

-- Anonymous, December 30, 2002

For me it means buy more trash bags (kitty litter discards, big priority!).

-- Anonymous, December 30, 2002

Oil falls from two-year highs as OPEC readies supply 31 December, 2002 07:52 GMT+08:00 Email this article Printer friendly version

By Andrew Mitchell

NEW YORK (Reuters) - Red-hot world oil prices fell back four percent Monday as the OPEC cartel indicated its readiness to fill supply gaps caused by a 29-day oil strike in Venezuela and looming war in Iraq.

U.S. light crude futures in New York settled down $1.35 at $31.37 a barrel after falling as low as $31.14. London Brent crude ended down 50 cents at $29.66 a barrel in a shortened session.

U.S crude earlier set a new two-year high of $33.65 a barrel on fears that a U.S. attack against Iraq early next year could further sap global supplies already hit by Venezuela's long strike. Brent hit $31.02 a barrel, a 15-month high.

Prices slid as a senior delegate from a member of the Organization of the Petroleum Exporting Countries said OPEC is sure to raise oil output quotas by at least 500,000 barrels per day (bpd) unless prices drop heavily in the next two weeks.

"The 500,000 barrels a day is sure. More than that is subject to ministerial consultations which are already under way," the delegate told Reuters. More

-- Anonymous, December 31, 2002