Jay GW
29th August 2004, 04:46 PM
Crude Oil Rises After Blast Damages Southern Iraqi Pipeline
Aug. 30 (Bloomberg) -- Crude oil futures rose in New York after an explosion damaged a petroleum pipeline in Iraq, likely renewing concerns about supply disruptions from the Middle East's sixth-biggest oil supplier to the U.S.
The blast occurred in a pipeline in southern Iraq and an investigation is being carried out, Jabbar al-Leaby, director- general of state-run South Oil Co. said in an interview yesterday. He wouldn't say if the explosion affected the flow of oil to export terminals in the Persian Gulf. Oil rose to a record $49.40 a barrel on Aug. 20 partly on concerns about Iraqi supply disruptions.
"The immediate reaction to this Iraqi pipeline news will be up a little bit, and then wait for a real assessment as to what the damage really is in terms of how much oil is not going to come out of there now,'' Tobin Gorey, an economist at Commonwealth Bank of Australia, said before the market opened. ``No-one seems to know what the damage is.''
http://quote.bloomberg.com/apps/news?pid=10000087&sid=abfekd2PRMcA&refer=top_world_news
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Why are oil prices rising based on events at one pipeline in southern Iraq?
Aug. 30 (Bloomberg) -- Crude oil futures rose in New York after an explosion damaged a petroleum pipeline in Iraq, likely renewing concerns about supply disruptions from the Middle East's sixth-biggest oil supplier to the U.S.
The blast occurred in a pipeline in southern Iraq and an investigation is being carried out, Jabbar al-Leaby, director- general of state-run South Oil Co. said in an interview yesterday. He wouldn't say if the explosion affected the flow of oil to export terminals in the Persian Gulf. Oil rose to a record $49.40 a barrel on Aug. 20 partly on concerns about Iraqi supply disruptions.
"The immediate reaction to this Iraqi pipeline news will be up a little bit, and then wait for a real assessment as to what the damage really is in terms of how much oil is not going to come out of there now,'' Tobin Gorey, an economist at Commonwealth Bank of Australia, said before the market opened. ``No-one seems to know what the damage is.''
http://quote.bloomberg.com/apps/news?pid=10000087&sid=abfekd2PRMcA&refer=top_world_news
*****
Why are oil prices rising based on events at one pipeline in southern Iraq?