Oil prices have gone in opposite directions today, with WTI moving up on lesser amounts of crude from Canada, while Brent dipped.
U.S. WTI futures rose by 70 cents to $62.38 per barrel compared to the last end of session. Increase in WTI prices was a response to a lessened amount of oil from Canadian Keystone pipeline, where at the end of last year a leak was detected and since then it has not been operating at full capacity, reducing flows into the U.S.
Global Brent price fell in view of a decline in Asian stocks and a higher dollar, which could bring down demand as fuel becomes more costly for states that use their own currencies.
Brent futures lost 19 cents, going down to $65.48 for a barrel from the last settlement. This kind of price movement has strongly diminished WTI’s discount to Brent to about $3.22 a barrel today, whereas at the end of last year it was above $7.
Generally, oil markets are still propped up by OPEC’s supply curbs, which began in 2017 aiming at stopping global oversupply. OPEC member-states adhere to the agreement of production cuts for January by 133%, Mohammad Barkindo of the organization said yesterday.