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IEA says monitoring Forties crude pipeline outage, sees no need to act yet

IEA says monitoring Forties crude pipeline outage, sees no need to act yetLONDON: The International Energy Agency said it is monitoring the closure of the Forties crude pipeline that has sent oil prices to 2-1/2 year highs, but said it saw no immediate need to act as the market remains well supplied.

The pipeline, which can handle around 450,000 barrels per day of Forties crude oil and carries around a third of UK gas produced offshore, closed down on Monday and may remain shut for a number of weeks, after its operator Ineos detected a minor leak last week.

“We are monitoring the situation closely, and stand ready to act, but at the moment we see no need as the market is amply supplied from other sources and stocks are well above the five-year average,” the Paris-based IEA said in a statement on Tuesday.

The IEA advises Western governments on energy policy.

Oil prices have risen above $65 a barrel for the first time since mid-2015, while UK natural gas prices have hit their highest since 2013, just as a cold front has hit Britain.

Copyright Reuters, 2017

Source: Brecorder.com

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