Oil prices were still around the best levels in 2.5 years on Wednesday while market prospects for the coming year are quite tight, even though the return of Forties pipeline into operation slowed the rise of crude.
U.S. WTI futures lost 10 cents from the last close, falling to $59.87. The previous session saw the first instance of WTI overcoming the $60 mark since June 2015.
Brent futures dropped to $66.80 per barrel, which is 22 cents lower than the day before, when it climbed over $67 and that’s also first such case since May 2015.
Crude jumped after an explosion at a pipeline in Libya, though peaking price came with little amounts because Boxing Day meant London was not working, according to Trifecta’s Sukrit Vijayakar. The African country’s oil supplies lost around 90,000 barrels a day due to a burst that damaged the pipeline going to Es Sider port yesterday.
Today’s oil price losses are explained by the slowly returning into operation North Sea pipeline with the capacity of 450,000 barrels a day. As its operator said, total recovery of volumes will take place in a few weeks.
However, Forties and Libyan breakdowns, which make up near 500,000 barrels a day, are rather insignificant in terms of the global supplies, with both output and demand coming close to 100 mln barrels a day.