Oil Prices Jump to 19-month High

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Last updated at: (Beijing Time) Tuesday, September 24, 2002

Oil Prices Jump to 19-month High

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Crude oil prices on the New York market jumped Monday to the highest level in 19 months, as traders were concerned about a war with Iraq after the country refused to accept any United Nations resolutions on weapons inspections.

The price of crude oil for November delivery on the New York Mercantile Exchange closed at 30.71 dollars per barrel, up 87 cents, or 2.9 percent, from Friday's close, the highest level since February 9, 2001.

In London, the November North Sea Brent crude oil futures rose 70 cents, or 2.5 percent, to 29.13 dollars a barrel on the International Petroleum Exchange, the highest closing price since September 14, 2001.

Meanwhile, October heating oil climbed 1.87 cents to 80.57 cents a gallon, its highest close in a year, October gasoline futures grew 2.86 cents to 84.27 cents a gallon, and natural gas for October delivery gained 22 cents, or 5.8 percent, to 3.978 dollars per 1,000 cubic feet on the New York Mercantile Exchange.

The market feared that crude oil shipments will be disrupted bya US military action against Iraq after Iraq announced over the weekend that it would defy any new UN resolutions on arms inspections. On Monday, President Bush called on UN to adopt a "strong resolution" to disarm Iraq.

New York oil prices were also supported by news that operations at the Louisiana Offshore Oil Port have been delayed by Tropical Storm Isidore. The Louisiana port's operations closed over the weekend and may be affected for the rest of the week.

There were also comments from the Organization of Petroleum Exporting Countries (OPEC) suggesting that the oil cartel will not necessarily raise output if prices have been pushed high speculatively.

International crude oil prices have risen 55 percent since the beginning of the year, boosted by the threat of a military strike against Iraq, as well as the decision made earlier this year by OPEC to cut production quota.

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