Oil prices spike above 107 dollars on Iraq pipeline attack

0 Comments | AFP, March, 2008

LONDON (AFP) — Oil prices jumped above 107 dollars on Thursday as concerns about tight supplies were stoked by news that saboteurs had blown up an Iraqi export pipeline, traders said.

New York's main oil contract, light sweet crude for delivery in May, rose 1.05 dollars to 106.95 dollars per barrel, after earlier striking 107.70 dollars.

London's Brent North Sea crude for May climbed 61 cents to 104.60 dollars.

"The main current fundamental risk for oil is the extended fighting in Basra and this morning's report of a bomb attack on one of the export pipelines will bring a risk premium for the weekend," said Petromatrix analyst Olivier Jakob.

One of Iraq's two main oil export pipelines near the southern city of Basra was blown up by saboteurs on...