BAGHDAD: Iraqi officials on Tuesday said oil output operations would be back to normal by today, after the bomb attack cut production and exports by about 100,000 barrels per day.
The attack marked the first disruption of exports from southern Iraq since 2004, adding to longer term supply concerns that helped fuel an investor rush into oil and sent prices to triple digits.
Iraq oil supply disruption and the market reaction to it underscore how a finely balanced oil market continues to be vulnerable to supply disruptions, and that the political instability in some producer countries like Iraq and Nigeria is still far from being resolved analysts said.
On Friday, oil workers from OPEC member Nigeria threatened industry wide strike action over a dispute with Exxon Mobil.
Oil workers in Gabon also threatened to extend a strike that already has shut in around 90,000 bpd of the nation s total output of around 270,000 b/d.
Easing supply concerns from the OPEC nation prompted traders to book profits from the first quarter, when oil rallied to a record $111.80 a barrel.