Oil prices fell on Tuesday, retreating after an early surge to a 2½-year high when the United Kingdom's biggest North Sea oil pipeline was shut, crimping the flow of global benchmark Brent crude.
The Forties pipeline, which was scheduled to pump 406,000 barrels per day (bpd) in December, was shut on Monday after cracks were found in what traders believe is the first unplanned outage for some years.
That pushed Brent prices higher on Monday, and the rally continued into Tuesday morning before prices retreated during U.S. trading hours.
Brent crude, the global benchmark, was down $1.34, or 2.1 percent, at $63.35 at 2:29 p.m. ET, giving up all of Monday's gains. The contract earlier broke above $65 for the first time since June 2015, trading as high as $65.83.
U.S. West Texas Intermediate crude ended Tuesday's session down 85 cents, or 1.5 percent, at $57.14. It fell from an intraday peak $58.56, which was about 50 cents shy of a 2½-year high.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.