Iraqi oil pipeline has been under restoration after it was allegedly attacked by some anti-government fighters. The restoration paralyzed the operation in supplying oil in the world markets. Due to oil supply disruption, traders allegedly focused on the recent US economic slowdown, that would surely affect them.
The pipeline, which usually pumps about 1.5 mln bpd to the oil port of Basra in the south, was attacked yesterday by anti-government fighters loyal to Iraqi cleric Moqtada al-Sadr.
About 300,000 bpd of supply was disrupted in the first attack on Iraq's oil infrastructure in the south since 2004. Traders initially expected the disruption would last at least 48 hours.
However, news reports out earlier said the damage to the pipeline had been largely repaired, prompting some end of week profit-taking in oil and leading traders to renew their focus on the
US economic growth slowdown.'This morning oil futures slid as markets once again refocused on US economic concerns as it was suggested that oil flow through the damaged Iraqi pipeline may be almost back to normal,' said Sucden analyst Michael Davies.
He added, however, that while the Iraq issue seemed to resolve itself quickly, the fact that fighting has broken out in a previously stable part of the country could mean further disruptions ahead.
At 12.56 pm, New York's WTI crude for May delivery was down 81 cents at 106.76 usd per barrel, having hit a day high of 108.22 usd yesterday.
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