Iraq-Turkey Pipeline Explosion... Increasing Pressure on International Oil Prices

On the 18th (local time), gasoline and diesel prices are displayed at a gas station in Paris, France. Fuel prices in France have surged to their highest level since 2014.
[Image source=Yonhap News]

The explosion of an oil pipeline connecting Iraq and Turkey is expected to put additional upward pressure on the already soaring international oil prices.

According to Bloomberg on the 19th, BOTA?, the operator of the pipeline connecting southern Iraq to Ceyhan in southern Turkey, announced the explosion and stated that "the fire has been extinguished" and cooling operations are underway.

BOTA? said that pipeline operations will resume after "necessary measures" are taken but did not comment on the cause of the explosion.

The exploded pipeline is a major route transporting oil from Iraq through the Mediterranean port of Ceyhan to European refineries. The explosion occurred in Karamanmara?, Turkey, 511 km away from Ceyhan.

Last year, an average of 450,000 barrels (71.5 million liters) per day were transported to Europe through this pipeline. Therefore, the explosion is expected to deal a greater blow to the already rapidly rising international oil prices.

In fact, geopolitical tensions have increased as Yemeni rebels attacked oil facilities in the United Arab Emirates (UAE), a major oil-producing country, pushing international oil prices to their highest level in seven years.

On the 19th, the March delivery futures for North Sea Brent crude rose 0.90% from the previous session to $88.30 per barrel. The February West Texas Intermediate (WTI) futures increased 1.15%, trading at $86.41 per barrel.