Oil prices rose to their highest level since the war in Iraq today amid concerns over the impact on US oil inventories of another Arctic weather front. US light crude futures traded over USD35 a barrel for the first time since the invasion of Iraq last year. Brent crude rose 22c, or 0.7pc, to USD31.42.
Weather analysts in the US said a prolonged cold spell is forecast for the Northeast - the country's heaviest consumer of heating oil - with very low temperatures forecast for the next two weeks putting pressure on oil inventories. Meanwhile, further upward pressure was put on oil prices following a fire at a power plant servicing one of Kuwait's three oil refineries, stopping production. The three refineries have a combined capacity of more than 900,000 barrels per day, representing almost half of Kuwait's OPEC output quota. OPEC today also said it was considering a move away from using the US dollar to set its price targets for crude oil in favour of the euro as the dollar continues its slide against world currencies//www.fxcentre.com