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Brent crude rose above the $65-mark on Tuesday, for the first time since 2015, following reports that Britain’s Forties North Sea oil pipeline has been closed after cracks were found in it.
The global benchmark was last trading up 1.3 percent at $65.5/bbl, while the US West Texas Intermediate (WTI) crude futures rose 0.7 percent to $58.41/bbl.
The Forties pipeline, which can carry 450,000 barrels per day (bpd) of Forties crude from the North Sea to the Kinneil processing terminal in Scotland, had been operating at reduced capacity before the shutdown, Reuters reported.
The supply disruption further impacts the global oil markets, which are already tightening as a result of OPEC’s deal on production cuts.
A spokesman for operator Ineos told The Financial Times that the Forties pipeline system is likely to be shut for “weeks” to carry out repairs to an onshore section of the line.
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