[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 17 April 2007, 07:38 GMT 08:38 UK
Pipeline leak boosts oil prices
A pipeline
Oil prices have risen 25% since mid-January
News of a leak in a Canadian pipeline led to a slight recovery in oil prices, following Monday's falls.

Part of Enbridge's 450,000 barrels per day (bpd) pipe, which is the main route for Canadian crude going to refineries in the Midwestern US, has been closed.

Prices fell on Monday on the news that Royal Dutch Shell was to resume pumping from its 380,000 bpd Forcados field in Nigeria after a two month closure.

In early trading, Brent crude rose 32 cents to $67.57 a barrel.

Inflation threat

The news came as members of the European Central Bank (ECB) said that rising oil prices were the biggest inflationary danger in the eurozone economy.

The comments from governing council members Christian Noyer and Klaus Liebscher have added to expectations of another ECB interest rate rise.

Oil prices have risen about 25% since the middle of January.

The Forcados field has been closed since February 2006 but it is expected to resume production by the end of this month.

That news led to a $1.38 fall in Brent crude prices on Monday.

But concern remains that violence linked to the Nigerian elections on could cause further cuts in production from the world's eighth largest oil exporter.






FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific