Oil prices slide as OPEC opens taps

Oil prices eased on Tuesday as traders took profits from a rally spurred by a blast near Iraq’s main export terminal that cut exports to a virtual standstill and underlined the risk of supply disruption in West Asia. US light crude fell 14 cents to $37.45 a barrel, while London’s brent crude eased 3 cents to $35.45.

Prices had fallen in early trade, but then climbed around a dollar from session lows after sabotage attacks on one of the two main trunk pipelines from Iraq’s southern oilfields feeding the main export terminal of Basra. Iraqi exports have been running at around 1.7 million bpd.

OPEC decided to increase production quotas by two million bpd from July 1 and by another 500,000 bpd from August 1. It meets again on July 21 when it could review the second stage of the deal.

OPEC is estimated to be pumping at the fastest rate in nearly four years.