Oil jumps 5% as supply concerns grow after Caspian pipeline outage

Oil jumps 5% as supply concerns grow after Caspian pipeline outage  Oil prices jumped 5 percent, topping $121 a barrel, as exports from Russia and Kazakhstan via the Caspian Sea pipeline were disrupted, while concerns about scarce global supplies increased.  This increased market concerns about the repercussions of tough sanctions on Russia, the world's second-largest crude exporter, after the military operation in Ukraine.  The Caspian Sea pipeline is an important supply line to global markets, as it transports about 1.2 million barrels per day of Kazakhstan's main crude, equivalent to 1.2 percent of global oil demand.  Brent crude futures price rose 6.12 dollars, or 5.3 percent, to settle at 121.60 dollars a barrel.  The price of US West Texas Intermediate crude futures increased by $5.66, or 5.2 percent, to $114.93 a barrel.  The two benchmarks have risen steadily since the Russian military operation in Ukraine about a month ago, and the United States and its allies imposed wide sanctions on Moscow, causing confusion in the global oil trade.  Russia exports between four and five million barrels of crude per day, making it the second largest exporter of crude in the world after Saudi Arabia. Analysts' estimates vary on the amount of crude that will not be able to enter the market.  Oil exports from Kazakhstan's Caspian Pipeline Consortium terminal on Russia's Black Sea coast have been completely halted, after it was damaged by a major storm and continued bad weather, according to a shipping agent and pipeline manager.  Source: "Sputnik"

Oil prices jumped 5 percent, topping $121 a barrel, as exports from Russia and Kazakhstan via the Caspian Sea pipeline were disrupted, while concerns about scarce global supplies increased.

This increased market concerns about the repercussions of tough sanctions on Russia, the world's second-largest crude exporter, after the military operation in Ukraine.

The Caspian Sea pipeline is an important supply line to global markets, as it transports about 1.2 million barrels per day of Kazakhstan's main crude, equivalent to 1.2 percent of global oil demand.

Brent crude futures price rose 6.12 dollars, or 5.3 percent, to settle at 121.60 dollars a barrel.

The price of US West Texas Intermediate crude futures increased by $5.66, or 5.2 percent, to $114.93 a barrel.

The two benchmarks have risen steadily since the Russian military operation in Ukraine about a month ago, and the United States and its allies imposed wide sanctions on Moscow, causing confusion in the global oil trade.

Russia exports between four and five million barrels of crude per day, making it the second largest exporter of crude in the world after Saudi Arabia. Analysts' estimates vary on the amount of crude that will not be able to enter the market.

Oil exports from Kazakhstan's Caspian Pipeline Consortium terminal on Russia's Black Sea coast have been completely halted, after it was damaged by a major storm and continued bad weather, according to a shipping agent and pipeline manager.

Source: "Sputnik"
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