Oil prices swung higher Friday, bouncing back from losses the day before as nerves set in about cool weather, the level of US crude oil inventories, and terrorism.
New York's benchmark light sweet crude contract for delivery in December surged US$0.59 to US$30.85 a barrel. Brent North Sea crude for December gained US$0.50 to US$28.91.
A forecast of a return of cold weather to the northeastern US after an unseasonably warm spell "did not hurt" prices, said AG Edwards market analyst Bill O'Grady.
Renewed terrorism fears based on rumors also unnerved oil market traders, he said.
The price rise reversed a sell-off on Thursday, which was itself a reaction to dollar-plus per barrel prices increases Wednesday when data showed relatively low US commercial crude oil inventories.
"Brent is a little bit stronger again as it got oversold on the close yesterday, exactly the opposite of what happened the day before," said GNI trader Lee Elliott in London.
"The market is very volatile and it is extremely difficult to trade at the moment. The market is very nervous and is looking for a new trend."
Meanwhile, attacks on Iraq's oil pipelines and installations are on the increase, the Middle East Economic Survey (MEES) reports in its Monday edition, blaming a reorganized Baath party.
"MEES learns from industry sources in Baghdad that the attacks on oil piplines and other installations show no signs of stopping -- and are even on the increase. Not only are the acts of sabotage targeting Iraq's main export pipeline to Turkey and preventing the resumption of exports through it, but they are also interrupting the supply of crude to the Dora and Baiji refineries," the specialist weekly says.
It adds that Iraq is being forced to import more and more petroleum products to meet the shortfall.
The industry newsletter gives credibility to a a statement purportedly issued by the Baath party and published in the Lebanese newspaper An-Nahar on Nov. 2 outlining a strategy of resistance.
Besides trying to force the withdrawal of foreign troops, the document says "the resistance will work to prevent the exploitation of Iraq's natural resources, especially oil, on the part of the occupiers," the Cyprus-based weekly notes.
An explosion caused a large fire on a pipeline near Iraq's northern oil center of Kirkuk Friday, an oil company official told reporters.
The blast ripped through a pipeline linking Kirkuk with the al-Debs oilfields, further north, at 7pm, sources said.
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