Global crude oil news

9 Dec 2022 , 08:37 AM

Oil prices rallied on Friday as the closure of a key Canada-to-U.S. crude pipeline interrupted supplies, but prices remained near December 2021 lows on concerns over slowing global demand growth.

After falling 1.3% on Thursday, Brent crude futures were up 59 cents, or 0.8%, to $76.74 per barrel. U.S. West Texas Intermediate crude increased by 68 cents, or 1%, to $72.14 per barrel from its previous session’s closing price of 0.8% lower.

On Thursday, the market briefly rallied in response to news that an accident had shut down Canada’s TC Energy’s Keystone pipeline in the United States.

However, prices eventually declined as the market realized the closure would only last a short time. One of the largest crude oil spills in the United States in almost a decade occurred when more than 14,000 barrels of crude oil leaked into a creek in Kansas.

Since traders anticipate that it will take months before the benefits of China easing COVID controls feed through to demand, oil prices are expected to experience their biggest weekly decline in months.

The Biden administration may consider refilling reserves as WTI prices approach the $70 level.

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