77834
Brent Breaks Above $65 for First Time in Two Years
Brent Breaks Above $65 for First Time in Two Years

Brent Breaks Above $65 for First Time in Two Years

Brent Breaks Above $65 for First Time in Two Years

Oil rose above $65 a barrel for the first time since mid-2015 on Tuesday after a shutdown of the UK’s biggest North Sea oil pipeline, which helps set the benchmark for global prices.
The Forties Pipeline, which was scheduled to pump 406,000 barrels per day in December, was shut down on Monday after cracks were found in what traders believe is the first unplanned outage for some years, Reuters reported.
Brent crude, the global benchmark, was up by 92 cents at $65.61, after breaking above $65 for the first time since June 2015 and trading as high as $65.7. US crude rose 31 cents to $58.30.
“With no timeframe yet available as to when supplies through the Forties Pipeline will resume, bulls are in control,” said Ole Hansen of Saxo Bank.
Forties is important for the global oil market because the crude it carries normally sets the price of dated Brent, a benchmark used to price physical crude around the world and which underpins Brent futures.
“The disruption to Forties is not just about missing barrels; it is also about losing a key component for the main seaborne crude oil benchmark,” said Olivier Jakob, analyst at Petromatrix.
Analysts and traders said the outage was likely to cause significant delays in the loading of Forties' crude cargoes.
“There are going to be loads,” a trade source said, adding that the number was hard to estimate until the pipeline’s restart date is known. Oil also gained support from expectations the latest reports on US inventories will show a further tightening of supplies.
US crude stocks are expected to fall by 3.8 million barrels, a fourth straight week of decline, according to analysts polled ahead of reports from industry group American Petroleum Institute and the government’s Energy Information Administration.
The API was scheduled to release its data for last week on Tuesday. The EIA follows on Wednesday.
Oil supply cuts led by the Organization of Petroleum Exporting Countries this year have helped whittle away an excess of inventories that built up following a supply glut that began to emerge in late 2014.
But US crude has lagged the rally in Brent in part because of rising US oil production.
As a result, Brent has jumped to a premium to US crude of more than $7, the highest in more than two years.

Short URL : https://goo.gl/B4yGyz
  1. https://goo.gl/W5juYn
  • https://goo.gl/1F1suA
  • https://goo.gl/q8JUxA
  • https://goo.gl/Na3dN7
  • https://goo.gl/yK3o43

You can also read ...

Large Oil Vessel Anchors in Chabahar
A large crude carrier with a capacity of 50 million liters of...
China Shifts to Iranian Tankers to Keep Oil Flowing
Chinese buyers of Iranian oil are starting to shift their...
Replacement of France's Total Underway
Oil Minister Bijan Namdar Zanganeh said on Monday France’s...
Greek Island to Run on Wind and Solar Power
When the blades of its 800-kilowatt wind turbine start turning...
Vopak: More Volatility Expected in Oil Prices
A shipping revolution and a US plan to impose targeted crude...
Advantages, Challenges of Renewables Outlined
Saving water, creating sustainable jobs, curbing air pollution...
Plans to Expand Gas Pipelines by 1,000 Km 
Iranian Gas Engineering and Development Company plans to lay...
SP Oil Layer Loads 19th Cargo
The 19th batch of crude oil from South Pars Oil Layer in the...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus