Business

Oil price rises due to pipeline fire in Turkey

09:01 am on 8 August 2008

Oil rose in price on Thursday after a pipeline was attacked by Kurdish separatists in Turkey.

The Baku-Tbilisi-Ceyhan pipeline pumps one million barrels per day - more than 1% of world supply - to the Turkish Mediterranean coast. It is still ablaze after the explosion on Tuesday night and could remain shut for up to two weeks.

US crude rose 50 cents to $US119.08 a barrel by 1:58pm EDT (1758 GMT) on Thursday. London Brent crude traded up 29 cents to $US117.29. Oil reached a record price of $US147.27 on 11 July.

There are ongoing supply disruptions from Nigeria from rebel attacks and escalating tension between Iran and the West over Tehran's nuclear programme.

Crude oil inventories in the United States rose by 1.7 million barrels in the week to 1 August. The US Energy Information Administration said on Wednesday that distillate stocks, including heating oil and diesel, rose by 2.8 million barrels. However, gasoline stocks fell by 4.4 million barrels.