Brent crude oil prices moved above $65 per barrel following the closure of the Forties North Sea pipeline. The development did knock out major supplies from a market that was already tightening following OPEC-led production cuts.
Brent crude futures on Tuesday, the international benchmark for oil prices, sat at $65.07 dollars a barrel at 0211 GMT. U.S. West Texas Intermediate (WTI) crude futures were at 58.21 dollars a barrel.
Britain’s Forties oil pipeline, the nation’s largest at a capacity of 450,000 barrels per day (bpd), shut down on Monday after cracks were discovered“The market reaction shows that in a tight market, any supply issue will quickly be reflected in higher prices,” said ANZ bank.
The increase in Brent prices widened its premium to WTI prices. This makes U.S. oil exports more attractive.