Iraq's oil exports were shut down on Monday by a power cut in parts of central and southern Iraq, including the country's only functioning oil export terminals, preventing oil from being pumped into tankers waiting at berths. Ceaseless sabotage has halted exports through Iraq's other main route, the northern export pipeline to Turkey. On the bright side, Venezuela has pledged to loan oil to Ecuador until its domestic production stabilizes, easing concerns Ecuador's export commitments to the United States might not be met, due to violent protests that brought oil production to a standstill. Ecuador's state-run oil company Petroecuador on Saturday restored 33,167 barrels of crude output, but that is still about 168,000 barrels short of normal daily capacity.
As the effects of sabotage that disrupt Iraq's southern pipeline exports weigh against partially resumed crude production in Ecuador, oil prices spiked beyond US$65 once again. Light sweet crude for September delivery rose to US$65.45 a barrel. While prices are over 40% above year ago levels, they are still below the inflation-adjusted high above US$90 a barrel, set in 1980. In London, October Brent crude rose to US$64.50 a barrel on the International Petroleum Exchange.
23-Aug-05 
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