Oil Prices Hit $90 Per Barrel After Bush's Warning About World War III

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Oil slips after hitting $90

Fri Oct 19, 2007 10:05am EDT

By Alex Lawler

LONDON (Reuters) -

(Crude oil prices) fell after surging to a record high above $90 a barrel earlier on Friday as tight fuel stocks ahead of winter and a softening U.S. dollar spurred investor buying.

The jump in oil prices has been fuelled by unprecedented weakness in the dollar, which hit a record low against the euro on Friday, a factor that has supported all dollar-denominated commodities.

U.S. crude (oil prices) fell 96 cents to $88.51 a barrel by 9:57 a.m. EDT, having hit an all-time high of $90.07 earlier. London Brent crude dropped $1.06 to $83.54.

"It is a long overdue correction, having reached $90," Christopher Bellew of Bache Financial said of the dip in prices.

Oil has averaged just over $67 a barrel this year and is climbing towards the inflation-adjusted high of $101.70 hit in April 1980, a year after the Iranian revolution.

Besides the weak dollar, concern that supply may be stretched in winter, when fuel demand peaks, lent support to prices.

"The dollar weakened further, spurring some investment into oil as a hedge against dollar weakness," said David Moore, commodity strategist from the Commonwealth Bank of Australia.

"And there are still concerns that oil market conditions will remain tight over the northern winter."

The price run-up has concerned OPEC, which may call for an early formal meeting to discuss a further output increase. An OPEC supply rise of 500,000 barrels per day (bpd), agreed last month, will take effect on November 1.

Although stocks of fuel in top consumer the United States rose last week, crude inventories stand about 4 percent below a year ago, while gasoline and distillate stocks are about 7 percent below last year.

Rising political tension between Turkey and Kurdish rebels in northern Iraq has also spurred gains, as traders worry about a disruption in flows of Iraq's northern oil exports.

(Additional reporting by Felicia Loo in Singapore)

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Iran denounces Bush "World War III" warning

www.chinaview.cn 2007-10-18 23:52:47 Print

TEHRAN, Oct. 18, 2007, (Xinhua) --

Iran on Thursday denounced a warning by U.S. President George W. Bush that Tehran's nuclear activities could lead to "World War III," the official IRNA news agency reported.

Bush's remarks indicated "hegemonic and ambitious objectives of the U.S. neo-conservatives," which would jeopardize international security, Foreign Ministry spokesman Mohammad-Ali Hosseini was quoted as saying.

Hosseini said that the current atmosphere of election campaign in the United States and the failure of U.S. performance in Iraq and Afghanistan have led the war-mongering approach of neo-conservatives to a dead-end, so their survival at the top of Washington's policy making hierarchy has become ambiguous.

Those U.S. officials use rhetoric and literature of war to cover up domestic and international difficulties they created, Hosseini added.

Bush warned on Wednesday that a nuclear-armed Iran would be a threat to world peace and could ignite a world war. "I've told people that if you're interested in avoiding World War III, it seems like you ought to be interested in preventing them (Iran) from having the knowledge necessary to make a nuclear weapon," Bush said.

The United States and other Western nations have constantly accused Tehran of developing nuclear weapons under the guise of a civilian-use program, which was repeatedly denied by Iran.

Editor: Mu Xuequan

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US arrogant attitudes pave way for 'World War III': Cleric

Tehran, Oct 19, 2007, IRNA

Tehran's substitute Friday prayers leader Ayatollah Seyyed Ahmad Khatami condemned recent remarks by US President George W.Bush and said the US arrogant attitudes, not Iran's peaceful nuclear activities, can pave the way for World War III President Bush, in his remarks on Wednesday, threatened that the world should convince Iran to abandon its nuclear activities to avoid World War III.

Addressing thousands of worshipers at Tehran University Campus, Ayatollah Khatami said,"If a danger threatens the world peace and security, it is the danger of US leaders' sheer greed and their arrogance and atomic arsenals." "The world should know that Iran is just a pretext (for US) and if they do not stand against US greed, the whole world and especially those who have been indifferent to the issue will be the losers," the ayatollah said.

Quoting Iranian medieval philosopher Avicena saying "I fear a bull because it has horns but lacks common sense" Ayatollah Khatami said, "If there's a concern, it is from the US arrogant policies which interferes in all the world affairs and wants to be the world godfather which, by grace of Almighty God, would not happen." Referring to the summit of the Caspian Sea Littoral States presidents in Tehran on Tuesday, Ayatollah Khatami said the successful meeting is one of the reasons of US anger.

"They're angry and they must be angry. They should die of their anger because they did whatever they could to prevent the successful holding of Tehran's Summit," the substitute leader of Friday prayers said.

Referring to US accusations that Iran is seeking atomic bombs, Ayatollah Khatami said, "We've said many times that A. bombs have no place in our defence doctrine." "In our Islamic teachings, we have been ordered not to poison enemy's water in a war, not to kill enemy's women and children, and not even to cut their trees. These teachings do not let us have weapons of mass destruction," the ayatollah said.

"We don't need an atomic bomb. What is it for? for preventive measures? With grace of God, we have adequate manpower and battle capabilities and we are in such a position to be able to slap on the face of any enemy who dares to violate the Islamic Republic." Elsewhere in his sermon, Ayatollah Khatami appreciated President Ahmadinejad's government for successfully holding the Summit of the Caspian Sea Littoral States presidents in Tehran and said Iran's foreign policy is close cooperation with the neighbouring countries in political, economic, security and defensive fields.

"The summit proved that the Islamic Iran, in spite of US enormous efforts to isolate it, is present in the regional and international scenes to the point that (Russian President) Mr. Putin calls it a big regional and international power." Ayatollah Khatami praised the summit's 25-article declaration and said," It was a good declaration. Especially the article 15 which stipulates that the five countries are committed not to permit other countries to use their territories for military operations against other sides." On domestic issues, Ayatollah Khatami advised the officials from the three branches of government to welcome critical comments.

"A society without criticism is a dead one. A lively society needs criticism. But critics should be fair. They should see the good points and praise them and criticize the faults and present their solutions." Ayatollah Khatami concluded.

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