One reason oil prices are rising
Insurgents bombed Saturday an oil pipeline in southern Iraq that had not been in use for several days, setting it ablaze, security forces in the area said.
The pipeline, which connects the Rumeila oilfields with export storage tanks in the Faw peninsula, had been shut down for a week due to threats from insurgents, and it was unclear what effect the bombing would have on exports.
Oil dipping almost $1 doesn’t signal the beginning of a major retreat, say commodities experts who suggest crude might never fall below $40 US a barrel again. “Some see a correction happening to $30 US a barrel but that’s just not going to happen. We’re in a market fundamentals situation — basic supply and demand — indicating a igh-price environment for … basically forever,” said Peter Linder of Calgary’s DeltaOne Energy Fund.