LONDON, June 13: Oil prices plunged on Friday, despite the apparent sabotage of an Iraqi oil pipeline, after the International Energy Agency (IEA) revised sharply upwards its estimates of industrialized nations’ oil reserves.

The price of benchmark Brent North Sea crude oil for July delivery fell 58 cents to $27.25 per barrel. New York’s light sweet crude July contract plummeted $1.11 to $30.40 per barrel in early electronic trading.

The falls came after the IEA report appeared to allay recent fears of possible supply shortfalls. This statistic would have a knock-on effect into later months.

“The figures show that the supply situation is not as tight as previously thought,” said Deutsche Bank analyst Adam Sieminski.

On Wednesday, oil prices had shot upwards after weekly US figures showed an unexpected drop in the country’s crude reserves, sparking worries that stocks could run low during the consumption-heavy summer.

Prices on Friday were not even helped by what appeared to be a sabotage attack on a pipeline sending oil from Iraq’s northern oil fields into neighbouring Turkey.

Two fires could be seen on the pipeline, near the key refinery town of Baiji, and local residents told AFP it had been attacked by Iraqis using explosives on Thursday.

“I don’t think the apparent pipeline attack, as an isolated incident, is enough to worry the market; pipelines are fairly easy to repair,” said Mr Sieminski.

Industry sources in Paris said French firm Total, Spanish groups Cepsa and Repsol, Italian company Eni, Turkish group Tupras, and Chevron Texaco had been awarded contracts to buy a total 9.5 million barrels of Iraqi oil.—AFP