Crude prices jump as a major North Sea pipeline shuts down

Crude prices took a jump as breakdown in a major pipeline sent the prices soaring.

The gap between Brent Future and WTI futures widened on Monday as one of the major Northern Sea pipelines was shut down after reports of cracks.

According to the company which operates the said pipeline has hinted that pipeline might remain closed for weeks as repairs ensue. Closure of any pipeline for such length has far reaching implications, however, the North Sea pipeline is expected to hit the global supply.

The Forties system is the main carrier of oil that underpins the Brent crude oil benchmark, a fact reflected in the nearly 2 percent spike in Brent prices on Monday, rising above $64.50 per barrel and breaking a new two-year high.

Brent crude futures, the international benchmark for oil prices, were at $65.63 a barrel at 0556 GMT, up 94 cents, or 1.5 percent, from their last close.

That marks the first time Brent has risen above $65 since June, 2015.

U.S. West Texas Intermediate (WTI) crude futures were at $58.41 a barrel, up 42 cents, or 0.7 percent, from their last settlement.

The jump in the Brent prices have widened the gap between the WTI and Brent Benchmarks, the highest premium since May 2015. The jump continues to fuel the rally in the US Shale industry, which looks for profit making as prices surge undermining OPEC efforts.