Oil prices raced higher today as Washington readied a draft resolution to put to the United Nations Security Council to disarm Iraq by force, and as the US braced for more cold weather.
The price of benchmark Brent North Sea crude oil for April delivery climbed to $32.90 a barrel in London in late trading from $32.27 at the close of the previous session. In New York, the reference light sweet crude April contract rallied 64 cents to $36.22 a barrel in early deals.
Oil prices rose as the diplomatic battle over US moves to disarm Iraq by force entered its final phase, though France said it would unveil detailed proposals to expand and accelerate arms inspections to try to avert war.
The war concerns overshadowed comments from Iran, the second-biggest producer in the Organisation of Petroleum Exporting Countries (OPEC), which said that the oil cartel should decide against reducing output at its next meeting on March 11.
Asked about the possibility of a production cut from the current level of 24.5 million barrels a day, Iranian Oil Minister Bijan Namdar Zangeneh said: 'I don't think so. The current situation in the region is abnormal both from a political and military point of view.'
Zangeneh said last week that OPEC should cut its output by three to four million barrels per day as soon as the Iraq crisis is over.
Traders said another major factor supporting prices was a strike in Venezuela that has severely disrupted the country's oil exports, though shipments have recovered partially, reducing the upward pressure on prices somewhat.
