Oil prices surged to $78 after Mexican attacks on oil and natural gas pipelines

The price of a barrel of oil has now surged to $78; this follows attacks on oil and natural gas pipelines in Mexico. The price of U.S. light crude saw a rise of 37 cents which now stands at $77.86 per barrel, the price of London Brent crude went up 28 cents which now stands at $75.76 a barrel.

The Mexican pipeline attacks happened on Monday and Jesus Reyes Heroles, chief executive of Pemex said that the explosions will not hit Mexico’s oil output or exports, but it has cut about a quarter of their natural gas flow. Although it is not a serious problem at the moment, it could have some long term affect this is why the futures have already acted so fast.