Oil edges up on North Sea outage

singapore — Oil prices inched up on Wednesday, supported by expectations of a fall in US crude inventories and by the ongoing outage of the North Sea Forties pipeline system.

US West Texas Intermediate (WTI) crude futures were at $57.72 a barrel at 0752 GMT, up 16 cents, or 0.3 per cent, from their last settlement.

Brent crude futures, the international benchmark for oil prices, were at $63.94 a barrel, up 14 cents, or 0.2 per cent.

“Oil prices inched higher on expectations of another strong drawdown in US inventories,” ANZ bank said.

The American Petroleum Institute said on Tuesday that US crude inventories fell by 5.2 million barrels in the week to December 15 to 438.7 million.

Official US government data from the Energy Information Administration (EIA) is due on Wednesday.

Oil prices have also been supported by the continuing outage of the Forties pipeline in the North Sea, which delivers crude underpinning Brent futures.

Operator Ineos hopes to be able to fix a crack in the pipeline, which can pump around 450,000 barrels per day of crude, within two to four weeks from December 11.

Despite the North Sea outage and falling US crude inventories, oil prices have remained some way off their $65.63 and $59.05 per barrel recent highs for Brent and WTI respectively.

Traders said rising US crude production was capping prices. —