Forties Pipeline Could Remain Shuttered For Weeks

The Forties oil and gas pipeline shutdown on Monday, caused energy prices in the United Kingdom to spike in the afternoon, according to a new report by Reuters . Brent Crude, which Forties carries, also spiked to a two-and-a-half-year high on news of the stoppage. Wholesale gas prices for immediate delivery dates rose by 28 percent to the highest rate since the beginning of 2013. The jump brought domestic gas prices almost to parity with Asian LNG rates. Brent crude was trading up 1.96% on the day at $64.64. A spokesman for Ineos, the pipeline’s holding company, said the pipeline would not be operational for “weeks rather than days.” “It happens to come at the highest demand point of the year, with the system already notably tight,” he added. Ineos just finished buying the pipeline and the Kinneil terminal from British Petroleum just over a month ago. The British […]

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