Oil prices boosted by falling stocks, concerns over Iraq

Oil prices stormed to their highest level in three months this week, buoyed by a spectacular drop in US oil inventories, renewed optimism on Wall Street and ongoing speculation of a US-led attack on Iraq.

The US energy department said Wednesday stocks of crude oil fell 7.2 million barrels, or 2.3 percent, to 300 million in the week ended August 9, while gasoline stocks fell 4.5 million barrels.