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Updated from 2:20 p.m. EDT

Crude oil prices jumped, closing at a one-month high Tuesday as traders reacted to the latest disruption of Iraqi exports following the long U.S. holiday weekend.

The benchmark U.S. crude gained $1.26, or 3.3%, to $39.65, continuing a rally that began last Wednesday after prices had touched a three-month low.

Iraqi exports have been cut in half since the weekend, when a major pipeline in the southern part of the country was damaged. It's unclear what caused the damage or when normal operations will be restored.

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Iraqi production only returned to normal less than two weeks ago, following lengthy repairs required because of sabotage acts.

Iraq's production has ranged between 1.6 million and 1.8 million barrels a day recently.

Oil prices had fallen as much as 15% from their record high of more than $42, touched right before the Organization of Petroleum Exporting Countries meeting a month ago. Prices briefly fell through $36 last week until short-term supply concerns re-emerged.

Members of the cartel agreed to raise the group's production quota by 2 million barrels a day in July and another half-million barrels a day in August, should that prove necessary. The current ceiling is 25.5 million barrels a day. Market analysts say the move is largely symbolic because the cartel's members were already producing some 2 million barrels a day above their previous quotas.

Traders bid up prices on short-term supply concerns triggered by strong global demand and terrorist attacks on oil-industry personnel and facilities in the Persian Gulf region ahead of the peak summer driving season in the U.S. and Europe.