Crude oil futures prices fell on Friday as worries about supplies from a major export terminal in Iraq eased after a report that damages from an attack yesterday can be repaired quickly.
A bomb attack in Iraq on Thursday affected crude flows through a pipeline system that conducts oil to Iraq's main port export in the south. Today CNBC reported that the pipelines could be repaired restoring operations later today.
Investors' worries had risen as supplies to the port were cut by 1.2 million barrels from an average of 1.56 million barrels a day yesterday. They had feared the conflict among Iraqi forces and Shiite militants would make the region unstable.
Crude oil for May delivery fell $2.48, or 2.31 percent to $105.10 a barrel on the New York Mercantile Exchange at 12:23 p.m.
Supporting oil prices, the Dollar index dropped 1.4% this week. A weakness in the dollar often leads to a rise in crude prices since declines in U.S. currency makes crude â€“traded in dollars- less expensive to foreign buyers.
Brent crude futures fell $2.33, or 2.17 percent, to $105.25 a barrel in London.