Sign up
Log in Sign up
This is a legacy page. Please click here to view the latest version.
Tue 12 Dec 2017, 10:16 GMT

Brent around two-year-high as critical pipeline closes


By A/S Global Risk Management.

The so-called Forties Pipeline was closed yesterday due to damage on the pipeline. The pipeline transports about 500 kbpd from the North Sea to UK. But it is not just any barrel of crude oil the pipeline transports. The crude this pipe transports accounts for a large part of the basket which is used to price the world's benchmark, Brent. The total closure of this pipe has sent Brent prices above the $65 level, which is a level not seen since 2015.

The supply disruptions started on December 7 as the capacity of the pipe decreased by 150 kbpd. Initially, this drove the price up from the $61-62 level to close about 63 on Friday. Yesterday, it was announced that the pipe suffered from a fissure and therefore it was closed. The closure drove the price to close about $65.

Tonight's crude oil inventory data from the American Petroleum Institute (API) will be followed closely - consensus is a draw in crude oil of around 2.89 mbbl.

The U.S.benchmark crude oil is called WTI (West Texas Intermediate), whereas the crude oil produced in the North Sea area is called Brent. Most oil is priced using Brent crude as the benchmark.

Turning to economic data, this morning saw improved UK inflation data compared to last month; later today the ECB President Draghi will speak ahead of tomorrow's closely followed U.S. central bank statement and Trump's speech.

Everllence 8L51/60DF engine. German ferry operator TT-Line cuts CO2 emissions with bio-LNG switch  

TT-Line reports emissions reduction after operating two Baltic Sea ferries on bio-LNG throughout 2025.
CMA CGM vessel with bunker delivery tanker alongside. CMA CGM vessel completes record biomethanol bunkering in Yangshan  

Delivery marks first time a vessel in its fleet has operated on biomethanol.
Photograph of tanker valves. Pres-Vac highlights tanker valve compliance requirements for alternative fuels  

Company outlines regulatory standards and performance criteria for pressure-vacuum relief devices on methanol and ammonia vessels.
HD Hyundai and ABS joint development project ceremony for nuclear-powered electric propulsion systems. ABS and HD Hyundai partner on nuclear propulsion for container ships  

Classification society and South Korean shipbuilder to assess feasibility for 16,000-teu vessel.
Japan Engine Corporation (J-ENG) logo. Japan Engine Corporation extends ammonia engine licence to Akasaka Diesels  

J-ENG grants domestic partner rights to manufacture alternative-fuel engines for decarbonisation efforts.
Photograph of ship with overlaid encircled text of EU regulations. DNV to host webinar on FuelEU Maritime compliance strategies  

Classification society offers insights as first reporting period closes and verification phase begins.
Photograph of ship with overlaid text showing narrowing MGO-biodiesel price spread. Biodiesel–MGO price spread narrows to $400–500/mt in Northwest Europe  

Bunker One says tighter spread creates opportunities for shipping companies pursuing decarbonisation targets.
Graphic for webinar 'Exmar: preparing to sail using ammonia as a marine fuel'. Exmar to discuss ammonia-fuelled vessel operations in webinar  

Shipowner will explore safety measures and partnerships for new dual-fuel ammonia carriers.
Aerial view of a container vessel. Skuld reports engine damage from CNSL biofuel blends amid rising alternative fuel adoption  

Marine insurer details operational challenges with biofuels, including FAME, CNSL and UCOME across member vessels.
Graphic for Exmar webinar titled titled 'Exmar: preparing to sail using ammonia as a marine fuel'. Event date: 15 April 2026. GRM and Bunker Holding to host webinar on Middle East war's impact on energy markets  

Webinar on 9 March will examine effects on crude oil, bunker and gas markets.

↑  Back to Top


 Recommended