Brent crude oil prices jumped above $65 per barrel after the shutdown of the Forties North Sea pipeline knocked out significant supplies from a market that was already tightening due to OPEC-led production cuts.
Brent crude futures on Tuesday, the international benchmark for prices of crude, were at $
65.07 dollars a barrel at 0211 GMT.
U.S. West Texas Intermediate, WTI, crude futures were at 58.21 dollars a barrel.
Britain’s Forties oil pipeline, the country’s largest at a capacity of 450,000 barrels per day (bpd), shut down on Monday after cracks were revealed.
“The market reaction shows that in a tight market, any supply issue will quickly be reflected in higher prices,” said ANZ bank.
The jump in Brent prices widened its premium to WTI prices, making U.S. oil exports more attractive.