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Crude prices surge on reports of fires in Iraqi oil fields
London, Mar 21: Oil prices jumped on Friday as US military officers reported that three oil wells were burning in southern Iraq.
London, Mar 21: Oil prices jumped on Friday as US military officers reported that three oil wells were burning in southern Iraq.
The officers with the 1st Marine Division said the wells "have been torched" but gave no further details.
Witnesses near the Kuwait-Iraq border told The Associated Press they could see orange flames on the horizon in the direction of the city of Basra, a center of Iraq's oil industry.
The witnesses, located about 13 kilometres south of the border on the Kuwaiti side, said the flames were seen after a series of explosions which shook buildings in the area.
It was not known if the flames were caused by the explosions.
However, the US Defence Department was unable to immediately confirm that any wells were on fire. "We're aware of the reports, and we're looking into them," said Pentagon spokesperson Diane Perry.
Britain's Ministry of Defence also said it could not confirm the reports.
In London, May contracts of North Sea Brent crude surged to $27.35, up 60 cents a barrel, after hitting an early morning low of $25.53.
April contracts of US light, sweet crude rose 42 cents above yesterday's close to $30.30 in New York, after falling earlier to as low as $28 a barrel.
The Organisation of Petroleum Exporting Countries sought to calm oil markets earlier by announcing that its members had pledged to maximise output to make up for any disruption in crude exports from Iraq. Bureau Report
Witnesses near the Kuwait-Iraq border told The Associated Press they could see orange flames on the horizon in the direction of the city of Basra, a center of Iraq's oil industry.
The witnesses, located about 13 kilometres south of the border on the Kuwaiti side, said the flames were seen after a series of explosions which shook buildings in the area.
It was not known if the flames were caused by the explosions.
However, the US Defence Department was unable to immediately confirm that any wells were on fire. "We're aware of the reports, and we're looking into them," said Pentagon spokesperson Diane Perry.
Britain's Ministry of Defence also said it could not confirm the reports.
In London, May contracts of North Sea Brent crude surged to $27.35, up 60 cents a barrel, after hitting an early morning low of $25.53.
April contracts of US light, sweet crude rose 42 cents above yesterday's close to $30.30 in New York, after falling earlier to as low as $28 a barrel.
The Organisation of Petroleum Exporting Countries sought to calm oil markets earlier by announcing that its members had pledged to maximise output to make up for any disruption in crude exports from Iraq. Bureau Report