Iran on Monday said it opposed a bid by Western-friendly OPEC states to suspend output limits should the US launch an attack on Iraq, fuelling fears of a further spike in the price of oil.Leading cartel power Saudi Arabia is hoping to get backing at a Tuesday meeting of the OPEC to set aside production quotas if war stops Iraqi exports. Riyadh also is trying to convince importing nations there is no need for a release, in the event of war, from their emergency strategic stockpiles. Saudi faces Opposition from Iran for a plan that Tehran say simplies support for a US attack, by controlling oil prices. Oil price goes up to $34.34 per barrel LONDON: War jitters boosted oil prices on Monday as the US seemed confident of gaining UN support for a resolution allowing it to disarm Iraq by force. London benchmark Brent for April rose 24 cents to $34.34 a barrel while US light crude rose 26 cents to $38.04. “It looks like it could be a very strong week for crude and products as war fears mount,” said a GNI analyst. (Reuters) “Iran will not back politically motivated decisions,”Iranian Oil Minister Bijan Zanganeh told the official IRNA news agency. OPEC should not adopt any policy that implies support for a “US military assault against one of OPEC’s member states,” Zanganeh said. High prices, acting as a brake on world economic growth, edged up two cents for US crude to $37.80 a barrel, approaching the record $41-a-barrel highs set in the 1990 Gulf crisis. “The last thing we need now is to worry about oil supplies. People are not looking for a hardline OPEC,” said Peter Gignoux, head of the energy desk at Salomon Schroder Smith Barney in London.Delegates said Iran’s position was likely to find support from Libya, at least. That means the group may simply leave current output limits in place and signal its intention to ensure stable supplies in the event of a disruption. “We won’t be able to make any explicit statements but we will have to reach an understanding that those countries capable may produce what they can, which effectively is a suspension of quotas,” said a non-Arab delegate. “The Iranians can comfortably take a rhetorical position and still benefit from the fact that there’s pressure on OPEC to pump as much as possible,” said Raad Alkadiri of Washington’s Petroleum Finance Corp. Behind the scenes Saudi is ready to open the taps to the limit without OPEC backing. (Reuters)
