New York, Aug 20: US oil prices are near $31 a barrel this week after two explosions on Iraq’s main northern crude pipeline dashed hopes that the war-torn country would reach its oil export target by the year’s end. New York crude oil futures settled 16 cents lower at $30.89 a barrel in a technical sell-off after hitting a session high of $31.42, while North Sea Brent crude in London was down 15 cents at $28.66 a barrel.
“The market appears moving technically at the moment and correcting from Friday’s levels, which appear to be overdone,” said Phil Flynn, analyst at Alaron Trading in Chicago.
Over the weekend, two blasts on the Iraq-Turkey oil pipeline closed the key northern export route. The pipeline had only last week resumed pumping for the first time since forces led by the United States invaded Iraq in March.
Iraqi engineers and US soldiers struggled Monday to carry out repairs, but officials said it could be two weeks before the pipeline was working again.
Bureau Report