A sharp rally in oil prices gathered pace on Tuesday as a storm threatening oil output and shipping in the Gulf of Mexico added to uncertainty over the impact of any US-led attack on Iraq.
Dealers ignored evidence of a doubling in Iraqi crude exports last week, focusing instead on reasons why petroleum prices, already 50 per cent up so far this year, should spike further. US Benchmark crude oil futures jumped to their highest level since February 2001 to $31.32 a barrel.