(Bloomberg) -- A key pipeline running from Iraq to Turkey was knocked out by an explosion on Tuesday, adding to pressure on already tight oil markets.
Pipeline operator Botas said the fire was brought under control and cooling operations were under way. It would reopen once the “necessary measures” had been taken. The cause of the explosion was unknown.
It’s an important route bringing oil from northern Iraq to Europe via Turkey’s Mediterranean port at Ceyhan; the pipeline transported more than 450,000 barrels a day last year.
While it’s not clear how quickly it can be brought back, the loss would compound a globally tight physical oil market that has already seen multiple disruptions in recent months. Oil futures settled on Tuesday at the highest since 2014.
The pipelines bringing Iraqi crude to Europe have been halted before. Back in 2012 a blast that was blamed on saboteurs halted the link for several months.
©2022 Bloomberg L.P.
Advertisement