Brent reached a milestone following the shutdown of Forties North Sea pipeline
On Tuesday, Brent crude reached a $65 a barrel for the very first time since 2015, following the North Sea's Forties Pipeline system outage that diminished supplies from an already tightened market. Brent prices jumped by as high as 0.9 percent, adding 60 cents to finish at $65.29 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude prices rose more than 0.5 percent, or 31 cents, to settle at $58.30 a barrel.
OANDA’s senior market analyst, Jeffrey Halley, explained that released news that suggested a shutdown of the Forties North Sea pipeline had lifted Brent prices because the pipeline is an important component of Brent supply.
One should bear in mind that OPEC and other producers, including Russia, are continuously restraining supplies to tighten the market, yet rising U.S. production might be a hindrance to their efforts.
U.S. dollar remained stable as investors await Fed’s policy meetingThe U.S. dollar stabilized close to its two-week high against its major peers recorded on Tuesday as investors were waiting for the outcome of Fed’s two-day policy meeting ending on Wednesday. The U.S. Federal Reserve is expected to raise interest rate. Some economists predict there will be three more rate hikes in 2018. The U.S. dollar index closed marginally up by 0.1 percent at 93.931, near its highest level since November 21 (94.087) recorded last week.