ANKARA: Oil prices rose on Monday due to supply concerns as the Keystone pipeline in the US was shut down due to the largest crude oil spills in roughly ten years, while tensions in the Russia-Ukraine war rose as Russia threatened to cut production in response to the price cap on its oil exports.
International benchmark Brent crude traded at US$76.50 per barrel at 10.10 am local time (0710GMT), up 0.52 per cent from the closing price of US$76.10 a barrel in the previous trading session reported Anadolu.
At the same time, American benchmark West Texas Intermediate (WTI) traded at US$71.61 per barrel, a 0.83 per cent gain after the previous session closed at US$71.02 a barrel.
The closure of the Keystone pipeline in the aftermath of the largest oil spill in a decade increased supply pressure, which many experts believe could lead to a crude supply shortage in the US.
“We have not confirmed a timeline for re-start and will only resume service when it is safe to do so and with the approval of the regulator,“ the pipeline owner, TC Energy of Canada, said.
The pipeline closure, which carries more than 600,000 barrels of crude oil a day to refineries in the US Gulf Coast, is estimated to lead to shortages at two US oil refineries.-Bernama