By OGJ editors
HOUSTON, Nov. 11 -- Oil prices climbed Friday following US President George W. Bush's comments that Iraq would face "the severest consequences" if it refused to comply with a new United Nation's resolution requiring it to disarm.
The UN Security Council Friday unanimously approved a resolution giving Iraq a final chance to eliminate weapons of mass destruction.
After the vote, Bush said Iraqi President Saddam Hussein's "cooperation must be prompt and unconditional, or he will face the severest consequences."
Analysts said the market was liquid on thin trading activity pending a response from Iraq, which has until Nov. 15 to decide if it will comply with resolution. Iraq's parliament met in emergency session Monday but no announcement was expected until the deadline, traders said.
Meanwhile, oil prices on the New York Mercantile Exchange for December delivery are expected to trade in a range of $25.50-$26.50/bbl this week, traders forecast.
The oil price peaked above $31/bbl during September based upon concerns that military action against Iraq could disrupt crude oil supplies from the Middle East. Prices dropped as the UN took weeks to decide on a resolution.
Michael Rothman, Merrill Lynch first vice-president and senor energy market specialist, said, "For the oil markets, 'security of supply' concerns may again rear their head given that concerns surrounding Iraqi supplies largely evaporated these past few weeks."
On Friday, the December contract for benchmark US light, sweet crudes rose 40¢ to $25.78/bbl on NYMEX, while the January contract rose 19¢ to $25.12/bbl. Unleaded gasoline for December delivery jumped 1.14¢ to 71.28¢/gal. Heating oil for the same month was down 0.74¢ to 68.88¢/gal.
The December natural gas contract climbed 7.2¢ to $3.90/Mcf Friday on NYMEX.
In London, the December contract for North Sea Brent oil climbed 10¢ to $23.58/bbl on the International Petroleum Exchange. The December natural gas contract declined 29.2¢ to the equivalent of $3.40/Mcf on IPE.
OPEC's basket of seven benchmark crudes rose 1¢ to $23.62/bbl Friday.
