Oil price jumps to 43-month high on Saudi blast reports

Brent crude jumped $5.74 to $128.40 per barrel in New York on Thursday, the highest since July 2008. Saudi officials denied the reports, however, helping prices fall back from their highs in Asia on Friday. A number of issues have pushed prices higher, including tensions over Iran's nuclear plans and regional unrest. The new high set on Thursday beat the level seen during the Libyan civil war last year. In early trading on Friday, Brent was trading at $125.49 per barrel, with US light sweet crude at $108.47 per barrel. The problem facing the oil market at the moment is that events in a number of countries could have an impact on supply and demand, often causing traders to react more quickly to speculation and increasing volatility On Thursday, the trigger was a report in the Iranian media that an explosion had occurred at a pipeline in Saudi Arabia. The report came at a time when there has been a steady increase in friction between the US, its allies and Iran. The US has imposed fresh sanctions against Tehran targeting the country's oil exports, while the European Union has announced a ban on imports of Iranian oil. For its part, Iran has threatened that it will close the Straits of Hormuz, a vital oil-trade route for oil from the Gulf - including Saudi oil - if the West imposes more sanctions. 2 March 2012 Last updated at 05:40 GMT Share this pageDelicious Digg Facebook reddit StumbleUpon Twitter Email Print Oil price jumps to 43-month high on Saudi blast reportsContinue reading the main story Brent Crude Oil Futures $/barrel Last Updated at 01 Mar 2012, 20:45 GMT Continue reading the main story Related Stories Impact of EU ban on Iranian oil Iran oil divides Asian economies Crude oil prices have hit a 43-month high after reports that a pipeline exploded in Saudi Arabia, the world's biggest oil producer. Brent crude jumped $5.74 to $128.40 per barrel in New York on Thursday, the highest since July 2008. Saudi officials denied the reports, however, helping prices fall back from their highs in Asia on Friday. A number of issues have pushed prices higher, including tensions over Iran's nuclear plans and regional unrest. The new high set on Thursday beat the level seen during the Libyan civil war last year. In early trading on Friday, Brent was trading at $125.49 per barrel, with US light sweet crude at $108.47 per barrel.  Continue reading the main story Start Quote The sharp move up on the pipeline story points to the market nervousness on anything related to supply problems” End Quote Gene McGillan Tradition Energy The problem facing the oil market at the moment is that events in a number of countries could have an impact on supply and demand, often causing traders to react more quickly to speculation and increasing volatility. On Thursday, the trigger was a report in the Iranian media that an explosion had occurred at a pipeline in Saudi Arabia. The report came at a time when there has been a steady increase in friction between the US, its allies and Iran. The US has imposed fresh sanctions against Tehran targeting the country's oil exports, while the European Union has announced a ban on imports of Iranian oil. For its part, Iran has threatened that it will close the Straits of Hormuz, a vital oil-trade route for oil from the Gulf - including Saudi oil - if the West imposes more sanctions.