Oil prices dropped sharply on hopes that a war in Iraq, which could begin as early as this week, will be swift and successful. In London this morning, crude oil prices dropped USD1.23, or 4pc, to USD28.25 per barrel, after US president George Bush gave Saddam Hussein and his sons 48 hours to get out of Baghdad. "Their refusal to do so will result in military conflict, commenced at a time of our choosing," President Bush said in a televised address last night. More than 200,000 US troops on the Iraqi border are now poised to attack within days.
The US leader also urged Iraqi forces not to fight and not to set oil wells alight. "Do not fight for a dying regime that is not worth your own life. your fate will depend on your actions," he said. Oil also slipped on the NYMEX, falling USD1.40 to USD33.53. Overnight in New York, stocks on Wall St soared on hopes for a swift, victorious war, while the dollar surged against the euro. France, Germany and China have all spoken out against the US' plans for Iraq, with French president Jacques Chirac stating that this unilateral decision is "contrary to the wishes of the [UN] Security Council and the international community". ///www.fxcentre.com