Global crude oil news

13 Dec 2022 , 08:37 AM

Tuesday saw an increase in oil prices for a second day as a major pipeline supplying the United States, the world’s largest consumer of crude, remained closed and on hopes that demand will increase as COVID limits are loosened in China, the world’s second-largest consumer of petroleum.

Brent crude futures increased by 64 cents, or 0.8%, to reach $78.63 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 64 cents, or 0.9%, to reach $73.81.

Supply has been restricted as a result of the suspension of TC Energy Corp.’s Keystone Pipeline, which transports around 620,000 barrels of Canadian oil per day from Alberta to the United States. This has increased the likelihood that stockpiles at the Cushing, Oklahoma, storage hub will decrease. The delivery point for the WTI crude futures contract is likewise Cushing.

Since a 14,000-barrel leak in the American state of Kansas was reported on December 7, Keystone has remained closed. The line, which transports petroleum to refineries in the Midwest and Gulf Coast, has not yet been restarted. A timetable has not been provided by TC Energy.

It is anticipated that the pipeline closure will result in a decrease in U.S. crude inventories. In the week leading up to December 9, stocks decreased by 3.9 million barrels, according to an average estimate from seven analysts surveyed by Reuters.

The survey was done ahead of reports due on Tuesday from the American Petroleum Institute and on Wednesday from the Energy Information Administration, the U.S. Department of Energy’s statistical division.

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