Oil Rises on Pipeline Uncertainty

Brent futures were higher 41 cents, or 0.5%, at $76.51 a barrel by 0730 GMT. U.S. WTI crude was $71.55 a barrel, higher by 53 cents or 0.8%.

The price increases on Monday for WTI and Brent arrived after both grades dropped last week to their most vulnerable since December 2021 amid concerns that a potential global recession will affect oil demand.

On Sunday, Canada’s TC Energy (NYSE: TRP) stated it had not yet decided the reason for the Keystone oil pipeline leak in the United States last week. It gave no timeline as to when the pipeline would continue the process.

The 622,000-barrel-per-day Keystone line is a vital artery that transports Canada’s heavy crude oil from Alberta to the American Midwest and Gulf Coast refineries.

Russian Exports

China persisted in loosening its strict zero-coronavirus policy. However, the streets of the capital Beijing remained quiet, many businesses remained closed over the weekend, and residents said a return to normality was still a long way off.

Long lines began to form Monday outside fever clinics in Beijing and Wuhan, where the coronavirus emerged three years ago, showing the rapid spread of symptoms after authorities began to lift strict measures against the disease.

Russia, the world’s biggest energy exporter, can cut production and refuse to sell oil to any country that imposes a “stupid” price ceiling on Russian exports under the G7 accord, Putin said on Friday.

While the anticipation surrounding European Union sanctions on Russian oil and the corresponding price cap kept volatility high on prices, the sanctions have had a restricted impact on global markets so far, ANZ analysts stated in a note.