World oil prices climb higher as Iraq tensions simmer 

www.channelnewsasia.com First created : 07 March 2003 0937 hrs (SST) 0137 hrs (GMT) Last modified : 07 March 2003 0937 hrs (SST) 0137 hrs (GMT)

Oil prices swung higher on Thursday as war fears escalated ahead of a news conference by President George W Bush and on the eve of a UN weapons inspectors' report.

In New York, the benchmark light sweet crude for April delivery rose 31 cents to US$37.00 a barrel.Advertisement In London, the price of benchmark Brent North Sea crude oil for April delivery advanced 51 cents a barrel to US$33.51.

Analysts said the market is viewing last week's US$39.99-a-barrel peak on the New York contract as a new ceiling.

On Thursday, President Bush was to field questions in the White House's ornate East Room for just the second time since he took office, officials said.

The US leader hoped to lend momentum to efforts to secure the elusive nine votes needed to win passage by the UN Security Council of a new Iraq resolution paving the way for war while averting a veto by Russia, France, or China.

Traders were also waiting nervously for a report on Friday from chief UN arms inspector Hans Blix to the Council, and, perhaps more importantly, the reaction of council members to his findings.

A cold snap in the US and a strike in Venezuela that crippled the South American country's oil exports have drained US inventories to low levels.

Analysts warned the oil market was exposed to demand or supply side shocks.

US Energy Secretary Spencer Abraham said in Brussels he expected to meet OPEC ministers in Vienna next week but played down the prospect of an oil crisis linked to Iraq.