Oil prices continue to rise on Tuesday amid the suspension of an important oil pipeline in the North Sea, Brent is trading above $65 a barrel for the first time in more than two years.
The cost of February futures for Brent crude at the London Stock Exchange ICE Futures by 14:30 Moscow time increased by $ 0.94 (1.45%) – to $ 65.63 per barrel. The price of WTI futures for January on electronic trading in the New York Mercantile Exchange rose by $ 0.33 (0.57%) to $ 58.32 per barrel.
As reported, a fracture was discovered in the Forties Pipeline System (FPS) pipeline, through which 40% of North Sea oil produced on the British shelf is transported.
FPS transports oil from 85 fields, including the two largest on the British shelf – Buzzard and Forties. Suspension of the system reduces supplies to the market by about 400 thousand barrels per day.
“The closure of the Forties pipeline system (FPS), even temporary, will have major implications for the British oil and gas industry,” said senior analyst Wood Mackenzie in the North Sea region of Fiona Legeit.
Ineos, the operator of the FPS, said that the pipeline will not function for several weeks.
“The closure of the FPS has led the bulls in the oil market to a state of alert, no one knows for sure how long it will be closed,” Fawada Razakzadu of Forex.com, quotes MarketWatch analyst. “The Ineos spokesman said it could last” several weeks “. the fact that the reserves of oil are high, they may not be enough if the pipeline repairs are delayed.”