Iraq Pipeline Explosion to Cut Exports

An explosion on a major Iraqi oil pipeline this morning has sent oil prices rising and is expected to sharply reduce exports from the south of the country.

The explosion and subsequent fire has been extinguished and officials say efforts are under way to get shipments back to normal, writes Reuters.

Saboteurs blew up the pipeline transporting crude from Zubair 1 by placing bombs beneath it, causing severe damage, according to an official from Southern Oil Company.

Oil rose to more than US$106 a barrel following the incident, with US crude up 43 cents to $106.33 a barrel while London Brent crude advanced 52 cents to US$104.51.

By staff writer