LIVED IF THE BACKDROP OF ROCKY WORLD POLITICS REMAINS A THREAT TO RELIABLE ENERGY SUPPLY. AROUND A QUARTER OF OPEC PRODUCER NIGERIA'S PRODUCTION REMAINED SHUT IN BECAUSE OF MILITANT UNREST, AND THE DISPUTE BETWEEN IRAN, THE WORLD'S FOURTH LARGEST OIL EXPORTER, AND THE WEST CONTINUED TO SIMMER. THE UNITED STATES, BRITAIN AND FRANCE ON WEDNESDAY PRESSED AHEAD WITH A U.N. SECURITY COUNCIL RESOLUTION DEMANDING THAT IRAN CURB ITS NUCLEAR AMBITIONS AND SAID THEY WOULD PUSH FOR TARGETED SANCTIONS IF IT DID NOT. THE TEXT, WHICH IS BOUND TO BE MODIFIED, DOES NOT CALL FOR SANCTIONS BUT IS TOUGHER THAN EXPECTED. IT THREATENS TO CONSIDER "FURTHER MEASURES AS MAY BE NECESSARY," A VEILED WARNING OF SANCTIONS THE WEST WANTS IF IRAN DEFIES COUNCIL DEMANDS. RUSSIA, WHICH HAS VETO POWER IN THE COUNCIL, MADE CLEAR IT WOULD NOT SUPPORT ANY SANCTIONS BUT INDICATED IT COULD BACK AN INITIAL RESOLUTION IF IT WERE MODIFIED. U.S. PRESIDENT GEORGE W. BUSH IN THE PAST HAS NOT RULED OUT MILITARY OPTIONS, BUT DURING TALKS IN WASHINGTON ON WEDNESDAY WITH GERMAN CHANCELLOR ANGELA MERKEL HE PLACED THE EMPHASIS ON DIPLOMACY. ADJUSTED FOR INFLATION, U.S. CRUDE PRICES ARE NEAR THE HIGHS THAT COINCIDED WITH A SHARP REDUCTION IN DEMAND GROWTH DURING THE 1980S. "CRUDE OIL PRICES ARE NOW LESS THAN $20/BARREL FROM THE MONTHLY PEAK OF $89/BARREL REACHED IN NOVEMBER 1979," BARCLAYS CAPITAL WROTE IN A DAILY REPORT.
