Crude climbs well-above $30 a barrel as slow Iraqi exports and fund buying drive up prices.
Oil prices hit new post-war highs Wednesday as funds continued buying into the uncertainty over Iraqi exports and jitters over Tuesday's bomb attack in Indonesia.
Brent crude for September delivery gained 51 cents to $30.44 a barrel, a level last seen March 17, three days before the start of the war. NYMEX September crude rose 58 cents to $32.67 the highest level since the war.
"We are in uncharted territory now, there is no sign when it will stop," one dealer said. "The market seems to have decided we are in the same situation as in February in terms of nervousness over supplies."
Iraq has yet to say when it will begin exporting crude from its main northern export pipeline, while a deadly bomb attack in Jakarta has added to nervousness about possible supply disruption if such attacks spread.
Traders say prices have been moving higher on the anticipation of more buying by funds, whose long positions have hit record levels recently.
"The funds are long but it looks like they are looking to add to their positions rather than liquidating," a dealer said.
Traders are focusing now on U.S. official data which analysts predict will show a 500,000-barrel increase in overall crude stocks following robust imports.
But gasoline stocks are expected to decline by 1.7 million barrels following strong gasoline demand at the peak of the driving season.
Iraq's northern pipeline to Turkey, damaged by sabotage after the U.S.-led invasion, had been due to resume pumping in the next few days following repairs, but a senior Iraqi oil official said Tuesday there was no fixed date by which the pipeline was due to restart.
The U.S. administration in Iraq says the country is producing about 1.2 million barrels per day (bpd), of which 700,000-800,000 is available for export. Pre-war export potential was 2.2 million bpd on capacity of about 2.8 million.
Oil prices hit new post-war highs Wednesday as funds continued buying into the uncertainty over Iraqi exports and jitters over Tuesday's bomb attack in Indonesia.
Brent crude for September delivery gained 51 cents to $30.44 a barrel, a level last seen March 17, three days before the start of the war. NYMEX September crude rose 58 cents to $32.67 the highest level since the war.
"We are in uncharted territory now, there is no sign when it will stop," one dealer said. "The market seems to have decided we are in the same situation as in February in terms of nervousness over supplies."
Iraq has yet to say when it will begin exporting crude from its main northern export pipeline, while a deadly bomb attack in Jakarta has added to nervousness about possible supply disruption if such attacks spread.
Traders say prices have been moving higher on the anticipation of more buying by funds, whose long positions have hit record levels recently.
"The funds are long but it looks like they are looking to add to their positions rather than liquidating," a dealer said.
Traders are focusing now on U.S. official data which analysts predict will show a 500,000-barrel increase in overall crude stocks following robust imports.
But gasoline stocks are expected to decline by 1.7 million barrels following strong gasoline demand at the peak of the driving season.
Iraq's northern pipeline to Turkey, damaged by sabotage after the U.S.-led invasion, had been due to resume pumping in the next few days following repairs, but a senior Iraqi oil official said Tuesday there was no fixed date by which the pipeline was due to restart.
The U.S. administration in Iraq says the country is producing about 1.2 million barrels per day (bpd), of which 700,000-800,000 is available for export. Pre-war export potential was 2.2 million bpd on capacity of about 2.8 million.
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1275.09