IRAQ

Their helicopters buzz through the Baghdad sky, their patrols bristle with the latest weaponry and their armored vehicles carry the latest hi-tech gadgets.

U.S. crude oil hit a record high of $81.24 a barrel on Tuesday, the fifth consecutive trading session that prices have reached an all-time peak.

The review of all security companies in the country comes after a shooting incident involving guards from the U.S. firm Blackwater.

Clarifying a controversial comment in his new memoir, former Federal Reserve Chairman Alan Greenspan said he told the White House before the Iraq war that removing Saddam Hussein was "essential" to secure world oil supplies, according to an interview published on Monday.

U.S. Defense Secretary Robert Gates on Sunday rejected former Federal Reserve Chairman Alan Greenspan's statement that the Iraq war "is largely about oil."

A day after President George W. Bush cited enough progress in Iraq to justify U.S. troop reductions, the White House told Congress on Friday that Iraqi leaders had failed to meet half of their key goals.

President George W. Bush on Thursday ordered gradual troop reductions in Iraq but defied calls for a dramatic change of course, telling war-weary Americans the U.S. military role there will stretch beyond his presidency.

Crude oil prices vaulted to a record high $80 a barrel on Wednesday as dealers focused on tight inventories in top consumer the United States ahead of peak winter demand. The surge in oil prices came a day after OPEC agreed to a small production hike in an effort to soothe consumer nations' fears that soaring crude costs could slow economic growth.

Oil held above $78 a barrel on Wednesday, close to its record high, after OPEC's modest output increase failed to allay fears over stock levels during the coming winter.

Army Gen. David Petraeus, the top U.S. commander in Iraq, faced criticism from a Democratic presidential contender on Tuesday over America's war strategy.

Saudi Arabia persuaded OPEC to raise oil output by 500,000 barrels per day on Tuesday in a gesture to consumer nations worried by the economic impact of $77 oil and rapidly diminishing fuel stocks.

The top U.S. general in Iraq on Monday recommended cutting American troops by about 30,000 by next summer, ending the so-called surge of forces but not fundamentally changing strategy in the unpopular war.

Gen. David Petraeus, the top U.S. military commander in Iraq, is due to assess on Monday whether President Bush's move to add 30,000 troops in Iraq this year has succeeded - and what troop levels are needed going forward.

To the chagrin of green groups, APEC members signed a voluntary non-binding agreement to cut greenhouse gases.

In a report considered crucial to U.S. strategy in the highly unpopular war in Iraq, the top U.S. commander there is expected to tell Congress on Monday that U.S. troop levels should not be cut deeply.

Most OPEC oil ministers held the line on Sunday that current output is sufficient to meet demand, but the world's biggest exporter Saudi Arabia was silent ahead of a September 11 meeting to chart production policy. The group that supplies more than a third of the world's oil will consider conflicting economic signals at Tuesday's talks when it sets production levels for peak winter demand.

Asia-Pacific leaders said on Sunday they saw real progress in world trade talks now underway in Geneva and pledged flexibility and the political will to forge a deal by the end of 2007.

At the Asia Pacific Economic Cooperation summit, Bush said he would consider a peace treaty with North Korea if it gave up nuclear arms.

After a lightning visit to Iraq where he hinted at possible U.S. troop cuts, President George W. Bush arrived in Australia on Tuesday for an Asia-Pacific leaders' meeting amid heavy security and anti-war protests.

President George W. Bush hopes to spur momentum for a world trade pact and a global target on climate change at this week's APEC summit in Sydney, but host Australia has warned not to expect binding greenhouse targets. The Asia Pacific Economic Co-operation (APEC) summit will draw 21 leaders including Bush.

Iraq's parliament must overcome major disagreements over control of the world's third biggest oil reserves before it can pass a vital oil law to lure billions in foreign investment, Iraqi officials said on Monday.