Singapore, December 13 (QNA) – Oil extended gains on Tuesday as a key pipeline bringing the resource to the United States remained shut, adding to concerns about potential tight supply in the world’s biggest crude consumer.

Brent crude futures rose $1.16, or 1.5%, to $79.15 per barrel, while US West Texas Intermediate (WTI) crude futures gained $1.05, or 1.4%, to $74.22.

Both benchmarks settled up more than 2% in the previous session.

The closure of TC Energy Corp’s (TRP.TO) Keystone Pipeline, which ships about 620,000 barrels-per-day of Canadian crude from Alberta to the United States, has tightened supplies and raised the prospect that inventories at the Cushing, Oklahoma, storage hub will decline. Cushing is also delivery point for the WTI crude futures contract.

Keystone has remained shut since a 14,000-barrel leak in the US state of Kansas was reported on Dec. 7. TC Energy has not released a timeline for a restart of the line, which carries crude to refineries in the Midwest and Gulf Coast.

Expectations that loosening COVID-19 restrictions in China, the second-biggest oil user globally, will boost demand also supported oil’s advances. (QNA)

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