Oil futures have opened higher today ahead of a key report from UN weapons inspectors in Iraq that could hasten an attack on Iraq.
Front month March Brent crude oil gained 26 cents to $30.75 a barrel, in line with US light crude which had gained 21 cents to $33.49 a barrel in overnight trade.
Ahead of chief weapons inspector Dr Hans Blix's briefing to the UN Security Council, Washington made it clear it was ready to attack Iraq alone if needed. Its ally Britain said Baghdad was hiding banned weapons, spying on arms inspectors and hindering their movements.
US secretary of State Mr Colin Powell said at the weekend time was running out for Baghdad to disarm voluntarily.
Oil prices are running close to two-year highs. They have been lifted by concerns that an attack on Iraq might coincide with a strike in Venezuela that has strangled oil exports from the world's fifth-biggest exporter.
Venezuelan President Mr Hugo Chavez hinted at the weekend that he may be forced to take up arms if he were defeated by the opposition movement, which is calling for him to step down.
Strikers said yesterday that crude output was about 986,000 bpd, 30 per cent of pre-strike levels; Mr Chavez claimed production had reached 1.32 million bpd.
Crude output before the strike, which started on December 2nd, was over three million bpd.