Oil prices dropped sharply today, continuing last weeks' downward trend after the US said it may agree to a compromise ruling from the United Nations Security Council on Iraq Previously, the US proposed a draft resolution that would have allowed the automatic use of force against the Gulf State if Baghdad was judged to have impeded weapons inspections. Britain was the only country to back the proposal.
The latest move from the US could delay any potential attack on Iraq, the eight biggest oil exporter last year. At 1215, crude oil in London was down 53c at USD27.31 per barrel, a decline of almost 2pc
Intense sabre rattling by President George Bush, who claims that Saddam Hussein has been stockpiling weapons of mass destruction, has boosted oil prices in recent months, lifting import prices in many western countries as demand for energy grows ahead of winter. //www.fxcentre.com