Iraq-Kuwait tensions push oil up

LONDON - Oil prices rose on Monday, boosted by renewed tensions between Iraq and Kuwait and signs that the European Union will not follow the US lead in releasing emergency oil reserves to cool the market.

Traders were also watching a storm in the Gulf of Mexico that was adding another element of uncertainty to the market.

Tensions between Iraq and Kuwait helped push prices back up after a two-week pullback from 10-year highs for Brent.

Kuwait accused Baghdad of stealing Kuwaiti oil through a pipeline laid during Baghdad's 1990-91 occupation of the Gulf Arab state.

In September, Iraq accused Kuwait of stealing its oil from a border field and vowed to take unspecific measures in response.



Leading Opec producer Saudi Arabia moved to alleviate fears over the stubborn price rally last week, and said it would pump enough oil to stabilise the market.

Meanwhile the US is scrambling to build heating-oil supplies for the winter, and the possible shortage has become an explosive issue at the top of the agenda during an election year.