Oil Prices Fly as high as the Kites

Oil prices rose for 4th day, in a row, to reach their highest levels, in 7-year, as a disruption of a pipeline from Iraq to Turkey raised concerns about an already existing forecast of growing tight supply, amid troubling geopolitical problems, in Russia and the Emirates.

Brent blend, the world benchmark, futures rose $1.44, or 1.7 percent, to $88.95 a barrel by 0230 GMT, following advancing 1.2 percent in the previous session.

That is the benchmark highest level, since it rose $89.05, on October 13, 2014.

For its part, US West Texas Intermediate crude futures rose $1.51, or 1.8 percent, to $86.94 a barrel, extending gains after recording a 1.9 percent increase on Tuesday.

West Texas Intermediate crude earlier climbed to a peak of $87.08, its highest level since Oct. 9, 2014.

The flow of oil through the Kirkuk-Ceyhan pipeline was halted, following an explosion, Turkish state pipeline operator Botas said on Tuesday.

For the time being, the cause of the explosion is unknown.

The pipeline transports crude from Iraq, the second largest producer, in OPEC, to the Turkish port of Ceyhan for export.

This was unfolded, at a time when analysts expect a lack of oil supply in 2022, due to reasons including the increase in demand, much more than what was expected, in the light of the highly contagious and infectious mutated strain of the Coronavirus variant, as some refer to the return of the oil price to $ 100 a barrel.

Exacerbating supply concerns are geopolitical problems, in Russia, the world’s second-largest oil producer, and the Emirates, OPEC’s third-largest oil producer.