The price of oil rose in early trading today as traders waited anxiously for US President George W. Bush's speech to the United Nations.
Kuwait also said it would oppose an output increase by the OPEC oil cartel.
Benchmark Brent North Sea crude for October delivery rose to $28.58 a barrel from 28.49 at the previous close, near 11-month highs scaled earlier this week.
With the oil market nervous that the United States is preparing to launch an attack on Iraq and about the risk such a move poses to the stability of the Middle East, Mr Bush's speech to the UN on Thursday will be closely watched by traders.
The speech to the UN General Assembly is widely seen as giving the United Nations a final shot at peacefully disarming Iraqi leader Saddam Hussein before Bush takes unilateral action.
Prices were also supported by comments by Kuwaiti oil minister Sheikh Ahmad al-Fahad al-Sabah that he would oppose any proposals for the Organisation of Petroleum Exporting Countries (OPEC) to boost output when he meets with ministers of fellow members of the cartel in Japan next week for a formal meeting on Thursday.
Reports have suggested that OPEC kingpin Saudi Arabia may push for an output increase at the meeting, while other members such as Iraq, Indonesia and Venezuela have also spoken out against such a move.
AFP