Oil prices stable as Forties Pipeline multiplies OPEC efforts

Oil Markets were stable on Friday after reports of a pipeline outage sent the prices upward. The recent outage has amplified the OEPC efforts by a huge margin. Apart from the rising US Crude Production, all seems to be working in the favor of OPEC during the last few months.

U.S. West Texas Intermediate (WTI) crude futures were at $57.18 a barrel at 0539 GMT, up 14 cents from their last settlement.

Brent crude futures, the international benchmark for oil prices, were at $63.34 a barrel, up 3 cents from their previous close.

The Forties pipeline, one of the major Northern Seas supply chain link has been shut down after a hairline crack was reported by the company. The pipeline serves as one of major sources for oil transport for European consumption. It is one of the few pipelines backing the Brent Benchmark. Regarding the opening of the pipeline, the company release said that, “at this stage it is still too early to say how long the repair will take to complete …..  it is expected to be a matter of days rather than weeks.”

Traders are of the opinion that the oil prices are well balanced by the OPEC efforts during the last year, the price rise is not surprising but sustainable in the future after Oil Pipeline resumes supplies to the UK.