Crude Shoots Above $110 a Barrel on Explosion Rumors

A reported explosion on a Saudi Arabian pipeline sent crude oil prices soaring above $110 a barrel Thursday.

Crude hit $110.55 shortly after 3 p.m. in New York after an Iranian press source reported that an explosion damaged a pipeline in Awwamiya, but Saudi officials said there was no such explosion, reported Bloomberg.

Nevertheless, crude oil prices climbed. Buffeted by regional tensions and fears of war, crude prices have been on the incline, but have not exceeded $110 a barrel since May.

Crude for the day Thursday closed slightly lower, reaching $108.84, a $1.77 increase over Wednesday's close.

Brent crude in London also spiked on Thursday, reaching as high as $128.40 a barrel. Like its partner in New York, the price settled lower at $126.