Dana, production growth a certainty

NEW YORK (AFX) - Oil prices shot up to a 22-month high Monday over concerns
about the continuing general strike in Venezuela and a possible war in Iraq.
The barrel of light sweet crude -- a key reference -- for February delivery
jumped 1.45 dollars to 31.75 dollars.
"It's a continuation of the impact of the strike in Venezuela and oil supply
being disrupted, and the carry over reaction from the US determination that Iraq
is in patent violation of the UN resolutions (demanding its disarmament)", said
John Kilduff, an analyst with the Fimat brokerage firm.
Strike-paralyzed Venezuela's oil output had dropped from about three million
barrels per day to less than 300,000.
US House of Representatives energy and commerce committee chairman Billy
Tauzin pressed the government of President George W. Bush to open the taps on
the country's oil reserves, much of it stored in salt caverns along the Texas
and Louisiana coastlines.
The US strategic petroleum reserve is at a 25-year high of 598.8 million
barrels.
Bush announced in November 2001 plans to build the reserve to its full
capacity of 700 million barrels.
The government has said it is not considering opening up the reserves of
oil.
"We are monitoring the situation closely," said White House spokeswoman
Claire Buchan, declining further comment.
bur-cs/ch/mk/djp