The Return Of Oil's Most Important Pipeline

ExxonMobil’s Hebron oil platform is shown off the coast of Canada’s Newfoundland & Labrador in this

"A small number of customers are now sending oil and gas through the pipeline at low rates as part of a coordinated plan that allows Ineos to carefully control the flow and pressure in the system", the company said.

Brent crude, the benchmark internationally for oil prices, was down 19 cents early Monday sitting at $65.06 per barrel.

Ineos, operator of the Forties pipeline, said that the structure was being tested after repairs and that full flows should resume soon.

Currencies linked to commodity prices headed higher on Tuesday's price rally, with the Canadian dollar trading at $1.2675 after hitting a high of $1.2678, a level not seen since early December.

US West Texas Intermediate crude futures were at $59.73 a barrel at 4.21am GMT, down 24c from their last settlement.

"The confirmation that Forties is coming back...has the potential for capping Brent", said Olivier Jakob, analyst at Petromatrix.

Armed assailants blew up a pipeline pumping crude oil to the port of Es Sider on Tuesday, cutting Libya's output by up to 100,000 barrels per day (bpd), according to military and energy sources.

The North African country's output had been recovering in recent months after being held down for years amid armed conflict and unrest.

Trading activity was thin due to the Christmas holiday in many countries.

Brent has risen 17 percent in 2017.

Producers extended the agreement to cut supply through the end of 2018.

The Forties pipeline brings about 40 per cent of Britain's crude oil onshore from the North Sea.

The oil minister of Iraq said Monday there would be a balance of supply and demand during the first quarter of 2018, leading to an increase in price.

That is earlier than predicted in OPEC's latest official forecast, which calls for a balanced market by late 2018.

The unplanned shutdown of the Forties pipeline on December 11 pushed Brent to its mid-2015 high, while the OPEC action has lent support to prices all year.



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