VOL. XLVI

No 3

20-January-2003

OPEC

Crude Prices Rise As Market Discounts Two Of Three Iraq/Venezuela Scenarios

Crude prices rose last week to a two-year high, as traders and investors anticipated the worst case outcome for the Iraqi weapons and Venezuelan oil strike crises the US leading a war against Iraq while Venezuelan supplies continue to be held back from the market. Hedge funds have built substantial speculative positions in the crude market, while commercial oil companies have prepared...