Futures on US West Texas Intermediate Crude Oil swung between small gains and losses on Monday, as a major pipeline that supplies the United States was still not operational, while Russia threatened to reduce production as a counter move against the imposed price cap on its oil exports.
Canada’s TC Energy Corp said over the weekend that the cause of the Keystone oil pipeline leak in the US last week had not yet been identified. The energy infrastructure company did not provide any timeline as to when the 622,000 barrel-per-day pipeline would resume its functions.
Meanwhile, Russia’s President Vladimir Putin said last Friday that the country was ready to cut production and it might refuse to sell oil to any nation that joins in imposing the price cap on Russian exports agreed by G7.
According to ANZ analysts, oil price volatility remains high due to the uncertainty over EU sanctions on Russian oil exports and the associated price cap. Yet, those measures have so far caused a limited impact on global markets.
Saudi Arabia’s energy minister also emphasized over the weekend that EU sanctions and the oil price cap had shown no clear results for the time being.
As of 9:53 GMT on Monday WTI Crude Oil Futures were losing 0.89% to trade at $70.39 per barrel. Last week, the black liquid went down as low as $70.11 per barrel, which has been its weakest price level since December 21st 2021 ($68.56 per barrel).
At the same time, Brent Oil Futures were losing 0.91% on the day to trade at $75.41 per barrel. Last week, Brent Oil went down as low as $75.11 per barrel, which has been its weakest price level since December 23rd 2021 ($74.78 per barrel).