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LONDON : 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 Thursday, Samir al-Maksusi, spokesman for the Southern Oil Company told AFP.
The pipeline carries crude from the Zubair oil field to the Al-Faw storage facility from where it is exported, Maksusi said.
Historically, two-thirds of Iraq's oil output came from southern fields and flowed through Basra and in February, some 1.54 million barrels per day came from the city, according to the Iraqi oil ministry.
Lost production, however, in this case could total just 130,000 barrels of oil over the next few days as the pipe is repaired, according to analysts.
"Thus far, exports from Basra have not been materially affected but concerns regarding those exports are high and rising," said Dennis Gartman, editor of daily trading note The Gartman Letter.
Oil prices were also supported by a weaker-than-expected energy stockpiles report in the United States, the world's biggest energy user, dealers said.
The US government said Wednesday that crude inventories were unchanged at 311.8 million barrels in the week ending March 21.
That contrasted sharply with market expectations for a weekly gain of 1.8 million barrels.
"Oil futures were higher Thursday, extending gains ... amid the broad weakness in the US dollar and a bullish US fuel inventories report," said Sucden analyst Andrey Kryuchenkov.
Global supplies are being further pressured by the OPEC cartel's decision to maintain its output levels earlier this month.
Oil prices have been supported by long-term concerns over the ability of producers to meet rising energy demand from the developing world, notably China and India.
"Also many are using commodities to hedge themselves against much feared inflation," added Kryuchenkov.
New York crude hit a record intraday high of 111.80 dollars on March 17 while London Brent scored a historic peak of 108.02 dollars earlier this month.
- AFP /ls
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