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Forties oil pipeline to close for repairs, sending Brent crude higher

Published 12/11/2017, 11:42 AM
Updated 12/11/2017, 11:42 AM
© Reuters.  Forties oil pipeline to close for repairs, sending Brent crude higher
  • Brent crude oil (NYSEARCA:BNO) +1.7% to $64.45/bbl on news that the 450K bbl/day North Sea Forties pipeline likely will be shut for weeks to carry out repairs to an onshore section of the line.
  • A crack and leak was discovered last week, which operator Ineos says worsened over the weekend despite pressure being reduced.
  • The Forties pipeline carries ~40% of North Sea oil and gas and serves Ineos’s refinery at Grangemouth, which provides ~80% of Scotland’s fuel, so the shutdown could have implications for North Sea supplies as operators may be forced to reduce production until the line is restored.
  • U.S. WTI crude +0.5% at $57.67/bbl.
  • Other relevant ETFs: USO, UNG, OIL, UGAZ, UWT, UCO, DGAZ, DWT, SCO, BOIL, DBO, GAZ, DTO, USL, KOLD, UNL, DNO, OLO, SZO, DCNG, OLEM, OILK, WTIU, OILX, WTID, USOI, GAZB
  • Now read: Shale Oil Myths: 'U.S. Production Is Struggling To Grow'


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