Key Pipeline Closure Amplifies OPEC’s Efforts

15 Dec 2017   OPEC, Prices

But this time, it’s not the usual suspects of Libya, Nigeria, or Iraq. It’s a shutdown of a major oil pipeline in the North Sea, which is expected to last for weeks. The Forties Pipeline System—responsible for carrying 40 percent of the UK’s North Sea crude oil production—was shut down earlier this week after a small hairline crack at Red Moss near Netherley, south of Aberdeen, was discovered. At the time of writing, the latest media update from Forties operator Ineos early Thursday stated that “At this stage it is still too early to say how long the repair will take to complete, but it is expected to be a matter of weeks rather than days. We can confirm that formal Force Majeure has been declared on relevant contracts.” Not only is the Forties pipeline a key transit route for North Sea oil, the Forties crude blend is the […]

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