NEW YORK, (Reuters):
OIL PRICES hit post-Iraq war highs yesterday, inflamed by low United States (U.S.) inventories and worries about political instability in producer nation Venezuela.
U.S. crude settled up 70 cents to US$36.86 a barrel, the highest price since shortly before the U.S.-led invasion of Iraq in March last year. Brent crude oil in London rose US$1.11 to US$33.35 a barrel.
Oil prices have jumped more than US$4 since OPEC agreed last month to cut supply quotas by four per cent from April and rein in production over existing limits.
The International Energy Agency (IEAD), representing 26 industrialised nations, said yesterday prices were too high for consumers and could damage the economy.
"OPEC should take into account the market is not well supplied. Oil prices are much too high. It's bad for the economy, bad for consuming countries and not very good for producing countries either," said IEA executive director Claude Mandil.
"Oil prices have a very strong negative effect on the global economy," he told reporters in Paris, France.
