- Keystone oil pipeline situation:
- War in Ukraine and oil embargo:
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The rise in prices came as a key US pipeline shut down, while Russian President Putin threatened to cut production in response to Western price cuts.
Against the backdrop of the entry into force of oil sanctions against Russia, oil prices rose by more than 1%. Futures for Brent crude rose 41 cents, or 0.5%, to $76.51 a barrel.
According to ReutersAmerican WTI oil cost 71.55 dollars per barrel, up 53 cents, or 0.8% more expensive.
According to the material, the increase in prices occurred in connection with the shutdown of a key pipeline for the United States, while Russian President Putin threatened to cut production in response to Western price restrictions.
“Oil prices are higher as the Keystone pipeline remains closed, COVID controls in China loosened and fears Russia could cut production,” said Edward Moya, senior market analyst at OANDA.
Keystone oil pipeline situation:
The 622,000 bpd Keystone Pipeline is a critical artery transporting Canadian heavy oil from Alberta to refineries in the US Midwest and the Gulf Coast.
In early December, information appeared about a leak in the oil pipeline.
On December 11, 2022, Canadian company TC Energy said it had not yet determined the cause of the leak from the Keystone oil pipeline. She gave no timeline as to when the pipeline would resume operations.
War in Ukraine and oil embargo:
At the end of May 2022, the leaders of the EU countries agreed to impose a ban on the export of Russian oil.
From December 1, 2022, Turkey requires oil shippers to have insurance for passage through the Bosphorus and the Dardanelles. The new rules are related to compliance with EU and UK sanctions against the Russian Federation, although Turkey has not formally joined them. In other words, Turkey closed the straits for uninsured tankers with Russian oil.rce.
The price ceiling means that from December 5, 27 EU countries, the UK, the US, Canada, Japan and Australia will provide services related to Russian tanker oil only if it was purchased at or below the established ceiling price. From February 5, 2023, the purchase of Russian oil products will also be prohibited.