Dana, production growth a certainty

Oil price surges on war fears
By Christopher Swann, in London
Published: December 27 2002 20:41 | Last Updated: December 27 2002 20:41


The price of oil climbed above $30 a barrel on Friday, its highest level in 15 months, amid growing fears of war against Iraq and a crippling oil strike in Venezuela, the world's fifth-largest producer.

Brent crude on Friday hit a peak of $30.39 a barrel - taking its rise this year to almost 50 per cent - before falling back to $30.16 in later trade. Economists warned of an even sharper surge to come.

Bill Dudley, chief US economist at Goldman Sachs in New York, said: "Under-investment in oil infrastructure over the past decade has made it harder to get oil to market.

"As a result any disruptions could produce a very significant rise in price".