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Brent crude futures rose 80 cents, or 0.9%, to $88.31 a barrel
at 1035 GMT, adding to a 1.2% jump in the previous session. The
benchmark contract touched $89.05, its highest since Oct. 13,
2014.
U.S. West Texas Intermediate (WTI) crude futures climbed $1.06,
or 1.2%, to $86.49 a barrel. WTI earlier jumped to $87.08, its
highest since Oct. 9, 2014.
The explosion that set off the fire on the pipeline in the
southeastern Turkish province of Kahramanmaras was caused by a
falling power pylon, not an attack, a senior security source
said. [nL8N2TZ1J2]
The pipeline carries crude out of Iraq, the second-largest
producer in the Organization of the Petroleum Exporting
Countries (OPEC), to the Turkish port of Ceyhan for export.
Analysts are forecasting tight oil supply in 2022, driven in
part by demand holding up despite the spread of the Omicron
coronavirus variant, with some predicting $100 a barrel.
Security concerns involving Russia, the world's second-largest
oil producer, and the UAE, OPEC's third-largest producer, are
adding to supply fears.
Meanwhile, OPEC, Russia and other producers known as OPEC+, are
already having difficulty hitting their monthly output increase
target of 400,000 barrels per day.
"OPEC+ is falling short of hitting their production quotas and
if geopolitical tensions continue to heat up, Brent crude might
not need much of a push to get to $100 a barrel," OANDA analyst
Edward Moya said in a note.
OPEC officials have told Reuters that oil's rally may continue
in the next few months due to recovering demand and limited
capacity in OPEC+, and prices could top $100 a barrel.
(Additional reporting by Sonali Paul; editing by Kim Coghill and
Jason Neely)
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