Oil prices remain well supported this morning as the US prepares to seek another resolution against Iraq that will open the way for war in the Gulf. Chief weapons inspector Hans Blix will give his next report to the UN on 7 March but Washington and London will this week submit a new resolution to the UN Security Council claiming that Saddam Hussein is not fully co-operating with inspectors.
Speaking in Asia at the weekend, US Secretary of State Coin Powell said if Iraq does not co-operate, "then serious consequences must flow". At 0900, brent crude in London was up 27c at USD32.54 per barrrel, while NYMEX futures were up 27c to USD35.84. Oil prices spiked higher last Friday following an explosion on a fuel barge off Staten Island, New York, although US officials confirmed over the weekend that the explosion was accidental and was not caused by a terrorist attack. //www.fxcentre.com