Top Financial News
09/23 03:09
Crude Oil Rises to 19-Month High as Iraq Rejects New UN Terms
By Angela Macdonald-Smith
Singapore, Sept. 23 (Bloomberg) -- Crude oil rose to a 19- month high after a report that Iraq won't accept new United Nations conditions on weapons inspections, renewing concern the U.S. may attack the Middle East oil exporter.
Crude oil for November delivery rose above $30 a barrel for a second day, trading at $30.36 at 3:06 p.m. Singapore time in after- hours electronic trading on the New York Mercantile Exchange. On Feb. 14, 2001 crude oil rose as high as $30.85.
Iraq won't accept any new UN resolution that counters last week's agreement with Secretary-General Kofi Annan on the return of UN weapons inspectors, Agence France-Presse reported on Saturday, citing the Iraq News Agency. The U.S. said unfettered access for the inspectors is the first step to avoid war.
``It's looking more and more like the U.S. is going to do something, with or without support from the UN Security Council,'' said David Thurtell, a commodities analyst at Commonwealth Bank of Australia. ``It's just a matter of when, not if.''
Crude oil has risen 54 percent this year, partly on concern about a possible U.S. attack, and disruption to oil shipments from the Middle East, which supplies about one-third of the world's oil.
Striking First
U.S. President George W. Bush last week outlined a policy of striking first against ``rogue states and terrorists'' and demanded the UN enforce its resolutions or else the U.S. would take action against Iraq.
Any refusal by Iraq to cooperate may bring forward an attack to oust President Saddam Hussein, who Bush accused of developing weapons of mass destruction, including nuclear bombs, analysts said.
The statement by Iraq ``implies Saddam is not going to allow free and unfettered access to the arms inspectors,'' said Simon Games-Thomas, head of energy at Rothschild Australia.
Iraq last week agreed to the resumption of inspections ``without conditions'' and began discussions with the UN on practical arrangements for inspectors to begin their work in Iraq. Further talks are set for the week of Sept. 30 in Vienna.
The inspections would be carried out by the UN Monitoring, Inspection and Verification Commission, the successor to the UN Special Commission, which was disbanded in 1999 after its teams declared that Iraq was uncooperative. They left the country in December 1998 before a U.S.-U.K. bombing campaign.
Secretary of State Colin Powell, in testimony to Congress last week, said the U.S. would reserve the right to conduct regime change based on the results of arms inspections.
Lawmakers
On Friday, November crude oil rose as high as $30.15 before closing at $29.84, as Bush sought approval from U.S. lawmakers for a resolution authorizing military action against Iraq.
The proposed resolution, which is scheduled for debate this week, would empower Bush to use ``all means that he determines to be appropriate'' to disarm Iraq.
U.S. lawmakers such as Arizona Senator John McCain and Alabama Senator Richard Shelby predicted that Bush's resolution would have little trouble passing the U.S. Congress.
©2002 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.
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09/23 03:09
Crude Oil Rises to 19-Month High as Iraq Rejects New UN Terms
By Angela Macdonald-Smith
Singapore, Sept. 23 (Bloomberg) -- Crude oil rose to a 19- month high after a report that Iraq won't accept new United Nations conditions on weapons inspections, renewing concern the U.S. may attack the Middle East oil exporter.
Crude oil for November delivery rose above $30 a barrel for a second day, trading at $30.36 at 3:06 p.m. Singapore time in after- hours electronic trading on the New York Mercantile Exchange. On Feb. 14, 2001 crude oil rose as high as $30.85.
Iraq won't accept any new UN resolution that counters last week's agreement with Secretary-General Kofi Annan on the return of UN weapons inspectors, Agence France-Presse reported on Saturday, citing the Iraq News Agency. The U.S. said unfettered access for the inspectors is the first step to avoid war.
``It's looking more and more like the U.S. is going to do something, with or without support from the UN Security Council,'' said David Thurtell, a commodities analyst at Commonwealth Bank of Australia. ``It's just a matter of when, not if.''
Crude oil has risen 54 percent this year, partly on concern about a possible U.S. attack, and disruption to oil shipments from the Middle East, which supplies about one-third of the world's oil.
Striking First
U.S. President George W. Bush last week outlined a policy of striking first against ``rogue states and terrorists'' and demanded the UN enforce its resolutions or else the U.S. would take action against Iraq.
Any refusal by Iraq to cooperate may bring forward an attack to oust President Saddam Hussein, who Bush accused of developing weapons of mass destruction, including nuclear bombs, analysts said.
The statement by Iraq ``implies Saddam is not going to allow free and unfettered access to the arms inspectors,'' said Simon Games-Thomas, head of energy at Rothschild Australia.
Iraq last week agreed to the resumption of inspections ``without conditions'' and began discussions with the UN on practical arrangements for inspectors to begin their work in Iraq. Further talks are set for the week of Sept. 30 in Vienna.
The inspections would be carried out by the UN Monitoring, Inspection and Verification Commission, the successor to the UN Special Commission, which was disbanded in 1999 after its teams declared that Iraq was uncooperative. They left the country in December 1998 before a U.S.-U.K. bombing campaign.
Secretary of State Colin Powell, in testimony to Congress last week, said the U.S. would reserve the right to conduct regime change based on the results of arms inspections.
Lawmakers
On Friday, November crude oil rose as high as $30.15 before closing at $29.84, as Bush sought approval from U.S. lawmakers for a resolution authorizing military action against Iraq.
The proposed resolution, which is scheduled for debate this week, would empower Bush to use ``all means that he determines to be appropriate'' to disarm Iraq.
U.S. lawmakers such as Arizona Senator John McCain and Alabama Senator Richard Shelby predicted that Bush's resolution would have little trouble passing the U.S. Congress.
©2002 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.
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