Oil Soars Above $107 on Iraq Violence
Source: Alalam TV, 27-03-2008
LONDON--Oil prices jumped above $107 a barrel on Thursday when concern about tight supplies increased on news that saboteurs had blown up a major Iraqi export pipeline, traders said.
US light sweet crude for delivery in May rose by $1.12 to $107.02 per barrel.
London's Brent North Sea crude for May climbed 86 cents to $104.85 dollars.
Petromatrix analyst Olivier Jakob said: "The main current fundamental risk for oil is the extended fighting in Basra and this morning's report of a bomb attack on one of the export pipelines will bring a risk premium for the weekend."
One of Iraq's two main oil export pipelines near the southern city of Basra was blown up by saboteurs on Thursday, Samir al-Maksusi, spokesman for the Southern Oil Company told AFP.
Oil prices were also supported by a weaker-than-expected energy stockpiles report in the US, the world's biggest energy user.
The US government's Energy Information Administration (EIA) said Wednesday that American crude inventories were unchanged at 311.8 million barrels in the week ending March 21.
That contrasted sharply with market expectations for a weekly gain of 1.8 million barrels.
"Oil futures were higher Thursday, extending gains from last night amid the broad weakness in the US dollar and a bullish US fuel inventories report from the EIA," said Sucden analyst Andrey Kryuchenkov.
Global supplies are being further pressured by the OPEC organization's decision to maintain its output levels earlier this month.
Oil prices have been supported by long-term concerns over the ability of producers to meet rising energy demand from the developing world, notably China and India.
New York crude hit a record intraday high of $111.80 on March 17, while London Brent scored a historic peak of $108.02 earlier this month.
LONDON--Oil prices jumped above $107 a barrel on Thursday when concern about tight supplies increased on news that saboteurs had blown up a major Iraqi export pipeline, traders said.
US light sweet crude for delivery in May rose by $1.12 to $107.02 per barrel.
London's Brent North Sea crude for May climbed 86 cents to $104.85 dollars.
Petromatrix analyst Olivier Jakob said: "The main current fundamental risk for oil is the extended fighting in Basra and this morning's report of a bomb attack on one of the export pipelines will bring a risk premium for the weekend."
One of Iraq's two main oil export pipelines near the southern city of Basra was blown up by saboteurs on Thursday, Samir al-Maksusi, spokesman for the Southern Oil Company told AFP.
Oil prices were also supported by a weaker-than-expected energy stockpiles report in the US, the world's biggest energy user.
The US government's Energy Information Administration (EIA) said Wednesday that American crude inventories were unchanged at 311.8 million barrels in the week ending March 21.
That contrasted sharply with market expectations for a weekly gain of 1.8 million barrels.
"Oil futures were higher Thursday, extending gains from last night amid the broad weakness in the US dollar and a bullish US fuel inventories report from the EIA," said Sucden analyst Andrey Kryuchenkov.
Global supplies are being further pressured by the OPEC organization's decision to maintain its output levels earlier this month.
Oil prices have been supported by long-term concerns over the ability of producers to meet rising energy demand from the developing world, notably China and India.
New York crude hit a record intraday high of $111.80 on March 17, while London Brent scored a historic peak of $108.02 earlier this month.
- Related News
