Global crude oil news

12 Dec 2022 , 08:54 AM

As a crucial Canada-United States crude pipeline remained closed and Russian President Vladimir Putin threatened to reduce production in retaliation for a Western price ceiling on Russian oil exports, oil prices increased by more than 1% in early Asian trade on Monday.

Brent crude futures were up 83 cents, or 1.1%, to $76.93 per barrel. U.S. West Texas Intermediate crude was up 90 cents or 1.3% at $71.92 per barrel.

In addition to not providing a timetable for when the Keystone oil pipeline would resume operations, Canada’s TC Energy said on Sunday that it has not yet identified the source of the Keystone oil pipeline leak that occurred last week in the United States.

A vital route carrying heavy Canadian crude from Alberta to refineries in the Midwest and Gulf Coast of the United States as well as for exports is the 622,000 barrel-per-day Keystone line.

Putin of Russia, the largest energy exporter in the world, added on Friday that his country may reduce oil production and that it will not sell its oil to any nation that imposes a G7-agreed “stupid” price cap on it.

Concerns over the potential effects of a worldwide recession on oil consumption led to Brent and WTI posting their largest weekly losses in months and reaching lows not seen since December 2021 last week.

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