Oil jumps more than 1 percent on outage in North Sea, expected OPEC supply cuts!!!
Oil prices rose by more than 1 percent on Wednesday, pushed up by a North Sea production outage and expectations in the market that OPEC will next week decide to implement some form of supply cut to counter an emerging glut.
U.S. West Texas Intermediate (WTI) crude futures (CLc1) were at $52.36 per barrel at 0748 GMT, up 80 cents, or 1.6 percent from their last settlement.
International Brent crude oil futures (LCOc1) were up 89 cents, or 1.5 percent, at $61.10 per barrel.
The Buzzard oilfield, which pumps about 150,000 barrels per day (bpd) has closed temporarily after the discovery of pipe corrosion. As a result, trade sources said three cargoes due to load in December had been cancelled.
“The shutdown…is reducing supply of a North Sea crude that helps set global prices,” said Sukrit Vijayakar, director of energy consultancy Trifecta, referring to Buzzards’s role in the settlement of Brent futures.
The crude oil price slump since October is so far on par with the 2008 price crash and steeper than that of 2014/2015.
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