Explosion halts Iraq-Tukey crude pipeline flows

Turkey's state-owned Botas has halted flows on a pipeline that exports crude from Iraq following an explosion late on 18 January.

A blast hit the Kirkuk-Ceyhan pipeline at around 7.30pm local time, the company said. The reason for the explosion is unclear.

The fire has been extinguished and the pipeline will resume operations as soon as possible, Botas said, without giving more details.

Supply constraints, security concerns and rising demand have sent crude prices to multi-year highs in recent weeks. The Ice front-month March Brent crude contract rose to as high as $89.02/bl in intraday trading following reports of the pipeline explosion, up by 1.7pc from the close on 18 January.

By Kevin Foster