The lingering closure of a major North Sea crude oil pipeline network and a strike by Nigerian oil workers sent crude oil prices slightly higher Monday.

Pipeline operator Ineos maintains it could be about a month before a crack on the Forties pipeline system near Aberdeen is remedied. The fault crimped the flow of about 40 percent of the North Sea's oil production.

Elsewhere, workers belonging to the Petroleum and Natural Gas Senior Staff Association of Nigeria said Monday they'd wage a labor strike.

Combined, Phil Flynn, senior market analyst for the PRICE Futures Group in Chicago, said in a commentary emailed to UPI that those two events could put wind in the sales of a late-year rally.

"If the strike in Nigeria is a long one it could cause some big problems for Europe and could cause some shortages," he said.

Nigeria is one of Africa's leading contributors to production from the Organization of Petroleum Exporting Countries.

With trading light during the holiday season, the price for Brent crude oil was up 0.56 percent at 9:17 a.m. EST to $63.58 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, was up 0.59 percent to $57.67 per barrel.

The spread, or difference, between Brent and WTI gives U.S. oil an edge in markets where it's compatible. The spread has narrowed, however, in response to the shutdown of the Forties system because Brent is one of the oils moving through that infrastructure.

Gains early Monday may be supported by a decline in North American exploration and production, reported last week as rig counts by drilling services company Baker Hughes. Acceleration in U.S. shale oil production may be leading to higher costs and slowing down a sector credited with spoiling an effort by OPEC to balance the market with coordinated production cuts.

Tamas Varga, an analyst with London oil broker PVM, said it's too early to read anything into what amounts to short-term problems in the North Sea. Nevertheless, the ball may still be in OPEC's court.

"The outlook for next year is neither bullish nor bearish -- it is uncertain," he said. "Apart from revisions in U.S. oil output, OPEC's own production level, or better say the adherence to the deal, will be the most important price driver in 2018."

Tweet

Aker BP submits plans to develop 345 million Norwegian barrels
Washington (UPI) Dec 15, 2017
Norwegian explorer Aker BP said it tabled offshore field development plans representing 345 million barrels of oil equivalent and $1.8 billion in investments. The company submitted formal development plans to Norwegian regulators for the Aerfugl , formerly called Snadd, Skogul and Valhall fields in national waters. The fields combine for 345 million barrels of oil equivalent and investme ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only