Economic news

Oil prices gain due to Forties pipeline outage and reduction of new U.S. rigs

Oil prices grew on Monday while the Forties pipeline is still not working and some signals are showing that roaring US oil production growth could be decelerating, but the next year prospects suggest abundant supply though OPEC initiative for output reduction will still be in effect.

U.S. WTI futures went up 37 cents and attained the level of $57.67 for a barrel this morning from the previous close. Brent futures, the global standard for prices of oil, added 44 cents and reached $63.67 per barrel.

The operator Ineos reported of an emergency at its North Sea pipeline past week as some cracks were detected. The force majeure was largely supporting crude prices, Trifecta’s Sukrit Vijayakar said.

U.S. oil companies decreased drilling new rigs to 747 last week, which is the first such instance in over a month, according to Baker Hughes company’s Friday statement. Notwithstanding the cuts in drilling, the activity is anyway far over the last year’s figures, when the rig number didn’t get as high as 500, and real US production C-OUT-T-EIA has leaped 16% since the middle of 2016 getting to 9.8 mln barrels daily.

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