Oil prices push higher

Oil prices push higher

Oil prices remain under pressure

Oil prices have risen after the US confirmed it was drafting a second UN resolution on Iraq.

The move is seen as raising the possibility of military action against Iraq, the world's eighth largest oil exporter.

In the US, crude prices rose 16 cents to $36.96 dollars a barrel, the highest level since September 2000.

Meanwhile in London, benchmark Brent crude oil climbed 63 cents to close at $32.55.

Price rebound

Earlier on Tuesday, prices had slipped back following signs of a slight easing of tension over the Iraq situation.

Traders had reacted to a statement from EU leaders in which they said war was not inevitable.

But prices rebounded after the US said it could put forward a UN resolution as early as this week.

The resolution would seek to authorise the use of force against Iraq.

In addition to war fears, oil prices were also lifted by a snowstorm which it the east of the US over the weekend.

The cold weather is set to raise demand for heating oil as US oil reserves are at a 27-year low.

Oil supplies from major oil exporter Venezuela are also still affected by the impact of a two-month-long strike.