Oil edges higher after sharp Iraq-led fall<\/p>\n
Richard Ayton, Reuters, London<\/p>\n
Oil prices firmed on Thursday, shell-shocked after a drop to
\neight month lows on Iraq's acceptance of new United Nations
\nweapons inspections.<\/p>\n
International benchmark Brent crude oil was 21 cents higher at
\nUS$22.91 a barrel, having slumped by over a dollar on Wednesday
\nafter Iraq's letter of acceptance was delivered to the U.N.,
\neasing fears of an imminent assault by the United States against
\nthe oil producer.<\/p>\n
U.S. crude futures traded on an after-hours electronic system
\nwere 22 cents up at $25.41.<\/p>\n
U.S. President George Bush warned Iraqi President Saddam
\nHussein he would be judged by his actions, not his words.<\/p>\n
\"If he chooses not to disarm, we will disarm him. That should
\nbe clear to Saddam Hussein and everybody else.\"<\/p>\n
Any U.S. intervention in Iraq could near double the price of
\ncrude oil, Venezuelan President Hugo Chavez said on Wednesday.<\/p>\n
Speaking in Colombia, the leader of the world's fifth largest
\noil-producer said: \"An Iraq war could push the oil price over
\n$40, according to certain scenarios we have been evaluating in
\nOPEC.\"<\/p>\n
Traders' fears a war would cause disruption throughout the
\noil-rich Middle-East helped oil hit $30 a barrel in September,
\nbut the price has since deflated as increased production from
\nOPEC members has reached the market.<\/p>\n
OPEC in October pumped 3.21 million barrels per day above its
\nself-imposed 21.7 million bpd production ceiling, according to a
\nReuters survey.<\/p>\n
The cartel will meet on Dec.12 in Vienna to review production.<\/p>\n
Venezuelan oil minister Rafael Ramirez has said the group
\nwould act to support prices if crude continues to fall.<\/p>\n
Dealers are also awaiting Thursday's U.S. Department of Energy
\ndata on crude oil stocks in the United States.<\/p>\n
Traders will compare the figures with Tuesday's American
\nPetroleum Institute (API) data, which showed a surprise decline
\nin U.S. oil stores.<\/p>\n
Differences between the two bodies in accounting for oil in
\ntransit mean the official figures are expected to show stocks
\ndown by between three and four million barrels.<\/p>\n
The API figures showed a 7.2 million-barrel fall in U.S. crude
\nstocks in October, partly down to an earthquake in Alaska which
\ndisrupted the oil pipeline there.<\/p>",
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"sponsor": "Okusi Associates",
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