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Brent crude reaches new heights after the shutdown of Britain’s Forties pipeline

Prices for Brent went up 1% on Tuesday, the level unseen since the middle of 2015, following the cease of operation of the British Forties pipeline that blocked considerable amounts of oil, while the market had been tightening before that thanks to the initiative of OPEC.

Brent futures, the global standard for prices of oil, rose to $65.32 per barrel this morning, which is 1% growth from the last settlement. The contract reached as high as $65.70 for a barrel some time back today.

U.S. WTI futures climbed to $58.38 per barrel, which is 0.7% up.

Brent crude started its rise as soon as it was reported that the North Sea’s pipeline would require shutting down for several weeks because of some cracks in it, as Jeffrey Halley of Singapore’s futures brokerage OANDA said.

This pipeline is an important factor driving up Brent, he added. UK’s biggest Forties pipeline with the capacity of 450,000 barrels a day, ceased its operation on Monday due to the cracks detected in it.

ANZ bank’s comment was that whatever problem with oil supply arises in the conditions of a tight market it will instantly cause increase of prices.

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