www.forbes.com Reuters, 02.24.03, 12:34 PM ET

NEW YORK, Feb 24 (Reuters) - NYMEX crude oil futures extended early gains at midday on Monday as the United States and Britain vowed to push a new U.N. resolution that could set the stage for war against Iraq. Heating oil futures, which hit a fresh all-time high on forecasts of colder U.S. weather amid thin supplies, remained supportive. News that strike-hit Venezuela had partially lifted a force majeure for exports of some grades of crude oil had little impact on the morning trade. "Venezuela's government promised before that it would lift its force majeure totally at this time...so this partial lifting has little effect on the market," said Phil Flynn, market analyst at Alaron Trading in Chicago. At 12:30 EST (1730 GMT), NYMEX April crude was up 77 cents at $36.35 a barrel, trading $35.80 to $36.38. In London, April Brent crude traded 66 cents higher at $32.93 a barrel. On Monday, the United States said it expected U.N. action in "short order" on a new U.S.-British resolution on Iraq, which analysts say could pave the way for a possible U.S.-led attack against Baghdad. Both the United States and Britain want the U.N. Security Council to act on the resolution in about two weeks. White House spokesman Ari Fleischer told reporters early on Monday that the new resolution will be introduced this afternoon. Britain's U.N. ambassador, Sir Jeremy Greenstock, intends to present the resolution. Getting approval will be difficult in face of opposition from France, Russia and China, who have veto power on the 15-member council. Among the other members only Spain and Bulgaria support the United States and Britain, while the other nations either lean toward France or are undecided. To pass, the resolution needs nine votes, and no vetoes. Chief U.N. arms inspector Hans Blix that he does not expect any more talks with Iraq over the destruction of the al-Samoud 2 missiles which were found to exceed the range set by the world body after the end of the Gulf War in 1991. Blix has ordered Saddam to start destroying the missiles by Saturday. NYMEX March heating oil was at $1.1445 a gallon, up 3.60 cents, after surging earlier to a fresh all-time high of $1.1525 a gallon. It surpassed the previous record of $1.15 struck on Dec. 3, 1979, a year after NYMEX launched heating oil futures. Recent large draws in U.S. distillate stocks, including heating oil, have been prompted by a lengthy stretch of severe winter weather in the U.S. Northeast, the biggest regional consumer of heating oil in the world. Supply tightened after an oil strike began Dec. 2 in Venezuela, which before then supplied the U.S. with about 13 percent of its crude and refined product imports. The five-day outlook of private forecaster Meteorlogix beginning Monday calls for temperatures to be as much as 12 degrees Fahrenheit below normal in the region. There is a chance of light snow in the southern part of the region late Thursday and Friday, it said, just as the area is still reeling from last week's worst snowstorm in seven years. The six- to 10-day outlook after that calls for temperatures to be near to below normal, Meteorlogix said. The NYMEX oil complex ended sharply higher on Friday as traders, already edgy over a looming war with Iraq, were jolted by news of a gasoline barge explosion at an oil terminal on Staten Island, one of New York City's five boroughs. Exxon Mobil Corp. (nyse: XOM - news - people) said on Friday units at its 516,500 barrels per day (bpd) refinery in Baytown, Texas, were in planned maintenance, but would offer no further details. Meanwhile, OPEC President Abdullah al-Attiyah said Monday the cartel's producers had another 3 million to 4 million barrels a day of spare capacity to call on should war stop Iraqi exports. The figure is much higher than most independent estimates of spare capacity. NYMEX March gasoline was up 1.62 cents at $1.029 a gallon, moving from $1.022 to $1.037.

www.dailyexpress.com.my 23 February, 2003

NEW YORK: Oil prices rebounded toward two-year highs on Friday as a fuel barge exploded at an oil terminal in New York, briefly sparking terrorism fears.

The blast in the Arthur Kill waterway between Staten Island and New Jersey sent prices on the nearby New York Mercantile Exchange (NYMEX) soaring before law enforcement officials said it was an accident.

The U.S. government has already put the country on the second-highest level of terror threat alert, warning that energy facilities might be targeted.

U.S. crude for delivery in April climbed 84 cents to $35.58, up more than 40 percent since mid-November. International benchmark Brent crude oil rose 71 cents to $32.28 a barrel, versus a two-year high of $33.10 hit last week.

“There is nothing like a big bang to wake up the market, but it seems it was not a terrorist attack so things cooled off again,” said Christopher Bellew of brokers Prudential-Bache International.

Prices were strengthening even before the explosion as the United States said it had massed enough troops in the Gulf to attack Iraq, the world’s eighth-largest oil exporter. “The underlying strength still comes from Iraq, where there is every prospect of war,” Bellew added.

U.S. Defense Secretary Donald Rumsfeld said more than 150,000 troops were ready to move on Baghdad, while Turkey and the United States moved closer to a deal on deploying tens of thousands of troops on Turkish soil.

Washington plans to propose a new resolution to the United Nations Security Council next week authorizing a strike against Baghdad.

The United States, backed by ally Britain, is likely to face strong opposition from France, Russia and China, who want U.N. arms inspectors to be given more time to search for Iraq’s alleged stockpiles of biological, chemical and nuclear weapons. Baghdad denies it has such weapons.

“Oil prices are unlikely to shift too far away from a continuing upward bias until the situation with respect to Iraq moves to a more decisive phase,” said Paul Horsnell of investment bank J.P. Morgan.

The global oil market had slipped on Thursday on U.S. data showing an unexpected recovery in U.S. commercial crude oil stocks from their lowest levels in 27 years.

But commercial U.S. stocks of heating oil are running at almost 31 percent below last year, latest official data shows.

Blistering cold weather in the northeastern United States has also boosted demand for heating oil in a world market that is otherwise suffering from slow growth.

Inventories have also been crimped by a cut in supplies from Venezuela, which is struggling to restore normal exports after 11 weeks of strike by key oil company employees.

Venezuela, the world’s fifth-largest exporter before the strike, is now pumping at about half its normal rate of 3 million barrels per day. -Reuters

allafrica.com February 21, 2003 Posted to the web February 24, 2003 Charles Odoi Kampala

The price for petroleum hit the Shs 1,700 mark yesterday when oil companies raised the pump prices by Shs 70.

Diesel rose from Shs 1,380 to Shs1,450 and Kerosene was raised by Shs 50 from Shs 1,230.

This is the third time since the beginning of the year that fuel prices are rising.

Yesterday's price hike was attributed to the sharp increase of crude oil prices as the possibility of a US led attack on Iraq looms.

Oil strikes in Venezuela and Nigeria are also to blame.

Brent Crude Oil prices now stand at $32 a barrel just below a two year high it had reached of $33.10 last week.

"The price change came as a result of the rise in crude oil acquisition price on the World market which has risen by over 15% since January," Caltex Brand and Marketing Manager Edwin Kugonza said in a press release.

The statement said that Caltex increased the pump prices by 4% and will absorb the biggest portion of the 15% rise in crude oil prices.

In an interview yesterday, Total Managing Director Leopold Tzeuton said the value of the shilling to the dollar also played a big role.

"The increasing price of crude oil on the international market due to certain world events and the persistent increase in the foreign exchange rates have a big impact on fuel prices here," Mr. Tzeuton said.

"We are directly affected by the world market. We merely follow it and do not control it," he added.

Mr Tzeuton admitted the price hike could affect consumption but said that Total takes into consideration the purchasing power of ordinary Ugandans before making decisions.

"Total controls the way it increases prices. If we followed the market blindly, fuel prices would be much higher," he said.

But officials from the three major fuel companies; Shell, Total and Caltex said the oil shortage the Mombasa oil refinery faced early in the year and the break down of the Kisumu-Eldoret pipeline last month have nothing to do with yesterday's increase.

"Certainly not," Shell's Public Relations Officer Fred Massadde said.

www.forbes.com Reuters, 02.24.03, 9:35 AM ET

NEW YORK, Feb 24 (Reuters) - NYMEX crude oil futures are expected to rise on Monday as the market awaits a new U.S.-British resolution on Iraq to be sent to the United Nations in advance of a possible U.S.-led attack. "Waiting for war," said a New York trader. More cold weather in the United States also should keep products supportive, traders said. NYMEX April crude was called to open 20 cents to 30 cents higher after ending overnight ACCESS trading up 29 cents at $35.87 a barrel, trading $35.47 to $36.04. In London at 9:30 a.m. (1430 GMT), April Brent crude traded 25 cents higher at $32.52 a barrel. The United States and Britain want a U.N. decision on Iraq within about two weeks of submitting a new resolution to the Security Council early this week, British Foreign Secretary Jack Straw said on Monday. The new resolution, setting the stage for war in Iraq by declaring Baghdad in violation of U.N. demands will be introduced Monday, according to Security Council diplomats. Britain's U.N. ambassador, Sir Jeremy Greenstock, intends to introduce the resolution, which a spokesman for British Prime Minister Tony Blair hoped would be voted on by mid-March. Getting approval will be difficult in face of opposition from France, Russia and China, who have veto power on the 15-member council. Among the other members only Spain and Bulgaria support the United States and Britain while the other nations either lean toward France or are undecided. Technical analysts on Monday were expecting NYMEX crude oil futures to extend higher in the open outcry session after strong gains on products futures in ACCESS trade. The NYMEX oil complex ended sharply higher on Friday as traders, already edgy over a looming war with Iraq, were jolted by news of a gasoline barge explosion at an oil terminal on Staten Island, one of New York City's five boroughs. Analysts said Friday's break and close above resistance in the $35.50 a barrel region and subsequent gains above $36 for the April contract had rekindled waning bull momentum. The focus now should be on closing the gap down from $36.10 on the continuation chart left from the March contract expiration. The surge in products prices in reaction to Friday's barge blast showed the skittish nature of the present trading climate. "This is a very nervous market, and traders were already looking to buy ahead of colder weather over the weekend," said Cameron Hanover's Peter Beutel. "News of a fire, explosion was more than the market could bear." Exxon Mobil Corp. (nyse: XOM - news - people) said on Friday units at its 516,500 barrels per day (bpd) refinery in Baytown, Texas were in planned maintenance, but would offer no further details. "I can confirm we are in the middle of a planned maintenance, which started last Saturday," a company spokeswoman said. The company declined to cite the capacities of the refinery's units or specify which unit or units were down. U.S. products inventories have been depleted because of cold weather, especially in the U.S. Northeast heating oil-consuming region, and by the strike curbed supply flow from OPEC member Venezuela. OPEC President Abdullah al-Attiyah said on Monday the cartel's producers had another three to four million barrels a day of spare capacity to call on should war stop Iraqi exports. The figure is much higher than most independent estimates of spare capacity. More below-normal cold weather is forecast for this week in much of the United States, according to forecasters at Meteorlogix. NYMEX March heating oil was called 1.50 cents to 1.75 cents higher after ending ACCESS trade up 1.80 cents at $1.1265 a gallon, the overnight high. Nearby technical resistance is expected at $1.1350, just below the overnight high of $1.1290 cents. Support is due at $1.06. NYMEX March gasoline was called to open 0.75 cent to 0.80 cent higher after ending overnight trade up 0.82 cent at $1.0210 cents a gallon. Resistance is expected at $1.0360. Support is expected at $1.00.

reuters.com Mon February 24, 2003 08:40 AM ET By Duncan Shiels

LONDON (Reuters) - Oil prices sizzled near two-year highs on Monday and looked set to stay there well into March after Britain set the U.N. a two-week deadline to decide on a new resolution to be tabled this week.

Benchmark Brent crude climbed 29 cents to $32.56 a barrel while U.S. light crude was 34 cents up at $35.92 after touching two-year highs of more than $37 last week.

Traders were looking ahead to the March 1 U.N. deadline for Iraq to begin destroying banned al-Samoud missiles and show it is cooperating with demands to disarm, and March 7, the next report by the head of U.N. weapons inspections Hans Blix.

They see mid-March as the earliest date for any attack, a timescale seemingly confirmed on Monday by UK Foreign Secretary Jack Straw, who said the U.S. and Britain want a U.N. decision on Iraq within about two weeks of submitting a new resolution to the Security Council early this week.

"Because we want international consensus...we will be allowing a good period of up to two weeks, maybe a little more, before we ask for a decision," he said.

Washington and London want a U.N. resolution that could trigger war to end Iraq's suspected efforts to development weapons of mass destruction.

On Sunday, Secretary of State Colin Powell told reporters in Tokyo he expected the Security Council to make a judgment soon after the March 7 inspectors' report on the new resolution being presented by the United States and close ally Britain paving the way for war.

The U.S. military is anxious to act before April, when temperatures in Iraq begin to soar, and could make fighting tough for soldiers if they have to wear stifling protective suits and masks against the threat of chemical or biological weapons.

"Mid-March is already beyond the ideal time for the U.S.," said Adam Sieminski of Deutsche Bank, adding that prices would stay at current steamy levels as traders sit tight until war is triggered.

He said that with output from the world's largest fifth largest oil exporter Venezuela still stifled by an ongoing opposition strike, pressure was building for a release of oil from the United States' Strategic Petroleum Reserve to prevent prices reaching the $40s.

"The most important thing is that inventories globally are at very low levels," Sieminski said.

"If there's any kind of military action by the U.S. I see a fairly substantial Strategic Petroleum Release... but there's ample justification for doing something before then, given the outages from Venezuela."

The prospects for any U.S./British Security Council resolution being passed should become clearer late on Monday as the leaders of France, a veto-wielding member, and Germany, both leading efforts for a peaceful solution to the Iraq crisis, are due to meet on Monday.

Gerhard Schroeder and Jacques Chirac, will meet at a 17th century Berlin tavern for dinner and are expected to make a statement afterwards.

A top adviser to President Saddam Hussein said on Monday Iraq would decide "quite soon" about whether to abide by a U.N. order to destroy its al-Samoud 2 missiles and their components.

"It is being studied very carefully and the channels (with U.N. arms inspectors) are still open between us and we will come up with a decision quite soon," General Amer al-Saadi told reporters after talks with a South African disarmament delegation. Chief weapons inspector Hans Blix wrote to Iraq last week giving Baghdad until March 1 to start destroying the missiles which he said were found to exceed the 93-mile range limit set by a 1991 U.N. resolution. Baghdad says they were designed to stay within the permitted 93 miles.

Blix is expected to make his third report on March 7 to the Security Council assessing Iraq's cooperation with inspectors over its alleged activities involving biological, chemical and nuclear weapons.

Oil markets fear an attack in Iraq, the world's eighth biggest exporter shipping roughly two million barrels of crude a day, may spread to other producers in the Middle East, which supplies about 40 percent of globally traded crude.

Turkish Foreign Minister Yasar Yakis said a deal to let U.S. troops use the country as a base for any attack on Iraq was close, but issues such as control of northern Iraqi cities and oil fields needed final agreement.

He said a cabinet meeting on Monday might decide to send the deal to parliament for ratification.