The Zubair-1 pipeline attacked earlier today is used to transport crude oil from fields in Southern Iraq to the country's two main export terminals in the Gulf at al-Umaiya and Basra.

The attack is expected to cut oil exports from the Basra region - which were around 1.54 million barrels per day in February - by roughly one third until the pipeline can be repaired.

The incident helped lift global crude prices close to highs of nearly $107 per barrel in London trading this morning.

Iraq's total average production for February was 2.4 million barrels per day - roughly 80 per cent of which was accounted for by fields in the the Basra region.

Basra’s Rumaila South and North oil fields together produce around 1.3 million barrels per day. Several smaller fields in the region including Suba, Luhais, West Qurna and Zubair, account for most of the rest of the region’s output.

Iraq’s Southern Oil Company (SOC) operates the fields and has its headquarters in Basra. One of Iraq's three big oil refineries, the Shuaiba refinery, is also in Basra. It has a capacity of 160,000 barrels a day but is currently functioning below capacity.

Iraq’s fragile economy relies heavily on oil exports to help fund reconstruction efforts.

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