According to Hong Kong’s “Wen Wei Po†report, stimulated by news of a decline in the US fuel reserve, oil prices once soared on Thursday, and the attack on Iraq’s oil pipeline further pushed up oil prices, but then stabilized. New York's May oil rose 1.12 yuan in early trading yesterday, to 107.02 US dollars a barrel.
A local security force officer said that a group of armed men had blown up an oil pipeline in Zubell town 20 kilometers west of Basra yesterday morning and set off a large fire. This pipeline leads to Basra Port and is an important oil export channel in Iraq.
An Iraqi Southern Oil Company official told Reuters that some saboteurs had blown up one of the two major crude oil export pipelines in southern Iraq. A large number of crude oil spills were sprayed on the ground. Firefighters were struggling to control the fierce fire.
The official, who declined to be named, said: "This morning, saboteurs detonated the explosives that were set aside under the Zubair 1 oil field and destroyed the pipeline that transports crude oil. The damage is very serious."
He said that the impact of crude oil exports will be greatly affected because it is one of the two important pipelines leading to the southern oil terminal, which will cut off about one third of crude oil deliveries from Basra exports.
According to reports, in February of this year, Iraq exported 1.54 million barrels of crude oil from Basra every day.
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