March 1, 2012 - San Francisco, CA - PipeLineNews.org - Iran's semi-official news agency, Press TV, is reporting that there has possibly been an explosion damaging a major Saudi oil pipeline, "An explosion has hit oil pipelines in the flashpoint Saudi Arabian city of Awamiyah in the kingdom's oil-rich Eastern Province." [source, http://www.presstv.ir/detail/229494.html]
This is all the information that appears to be available at the present and we have not obtained independent confirmation of the facts surrounding the matter.
Speculation is rife regarding both the veracity of the report as well as the cause should it prove to be accurate.
In response to the alleged incident, oil futures have leapt above $110/bbl after the market's close [see, WSJ, http://online.wsj.com/article/SB10001424052970203986604577255162876617488.html?mod=googlenews_wsj] making this very bad news for Team Obama, whose energy secretary Stephen Chu just yesterday testified as to the administration"s lack of interest in keeping the price of oil down.
Chu has a history of favoring rising oil prices as a method of discouraging the use of fossil fuel.
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