Oil prices have surged to their highest level since the war in Iraq began on concern that the war in Iraq will be a lengthy one. Last night, George Bush and Tony Blair both warned that there would be no swift end to the military conflict, sending oil prices in London up more than 3pc this morning. The US President said the military conflict would last "however long it takes to win" while the UK Prime Minister said the coalition would "carry on until the job is done". The market is also reacting to unrest in Nigeria, which has cut oil supplies from the African country. Shell, ChevronTexaco and Total Fina Elf have shut production facilities
there. Brent crude rose 88c, or 3.3pc, to USD27.70 per barrel, while on NYMEX, oil was up 53c to USD30.90. Gold is also higher this morning, up USD1.97 to USD330.85 per ounce. Oil price fell sharply after the war began on hopes of a short conflict, but jumped 14pc in the last five days as US forces have met stiff resistance from Iraqi troops. News that the Pentagon is sending 100,000 more troops to the Gulf has reinforced speculation that all is not progressing well for the coalition//www.fxcentre.com