Eight oil pipelines sabotaged in southern Iraq, says South Oil Co
[Ya gotta love the bottom line comment at the end - mish]
Thursday, August 26, 2004 11:21:13 AM
(Update to add oil ministry says attack will affect exports, detail)
BASRA, Iraq (AFX) - Eight oil pipelines in southern Iraq were sabotaged in an overnight explosion, an official at the South Oil Company said. "At 9.00 pm (1700 GMT), a device exploded under a bridge, which collapsed. Eight parallel pipelines, feeding the Zubeir 1 and Zubeir 2 oilfields were damaged," the official said, speaking on condition of anonymity
The eight are part of a cluster of 20 at Al-Barjassiya, an official at the oil ministry in Baghdad said
"The fire still had not been put out Thursday morning. This sabotage will affect exports," he said, refusing to elaborate
The other 12 pipelines are not reported damaged
Officials also said that exports will be affected by the attack, which deals yet another blow to the country's vital but beleaguered oil industry
The oilfields in question lie 20 km southwest of Iraq's main southern city of Basra, the official said
Traders said the news helped to lift prices
World oil prices rebounded slightly in the wake the attacks, London traders said
The price of benchmark Brent North Sea crude oil for delivery in October climbed 22 cents to 40.90 usd/barrel in opening deals, having shed 1.64 usd/barrel the day before
New York's main contract, light sweet crude for October delivery, gained 31 cents to 44.78 usd/barrel in pre-opening electronic trading, having plunged 1.74 usd/barrel yesterday
"There's been headlines about problems in the south of Iraq, sabotage to crude oil pipelines overnight," Prudential Bache trader Christopher Bellew said. "That caused the market to rally by about half a dollar at one point, but it came back down a bit. It is not exactly clear what's going on. It seemed earlier that it was causing exports to be interrupted, but, it seems now maybe not." Oil prices plunged yesterday as a modest improvement in the supply outlook encouraged speculators to bank their profits
The New York contract meanwhile remains far below last Friday's all-time high of 49.40 usd/barrel
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