Oil slides further as Iraq exports recover

Oil prices eased further today as Iraq ramped up exports after mending sabotaged pipelines and extra supplies from the OPEC cartel…

Oil prices eased further today as Iraq ramped up exports after mending sabotaged pipelines and extra supplies from the OPEC cartel reassured international markets.

US light crude slid $0.64 to $36.91 a barrel, as the improvement in Iraq's exports coincided with today's earlier-than expected handover of sovereignty to the Iraqis.

Oil prices also have come down from 21-year highs at more than $42 a barrel earlier in June as evidence has emerged that more oil is hitting the market from OPEC producers. London's Brent crude was $0.63 down at $34.34 a barrel.

Prices fell as the head of Iraq's State Oil Marketing Organisation said today that exports from its two southern ports were close to two million barrels a day (bpd).

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Iraq's oil facilities have been under persistent attack in the run up to the formal transfer of power from the US-led occupation to an interim government.

Sovereignty was formally handed to the government at a low-key ceremony in Baghdad this morning, two days earlier than expected.

The resumption of normal output at Norwegian oilfields following last week's strike also weighed on prices.