UK Forties Pipeline to Restart in Early January
The recent closure of the Forties crude pipeline, UK’s biggest export system and the largest of the five North Sea crude streams used for assessing the dated Brent benchmark, will disrupt about 400K b/d from North Sea supplies for the next 2-4 weeks, according to newswires.
On Thursday, Forties operator Ineos stated that all necessary repairs on the hairline crack that caused the shutdown will be completed over Christmas, and the system will be fully operational in early January. The news initially caused the price of Brent crude to drop $0.28 from the end of Wednesday’s trading day to $64.28/bbl at 14:44 GMT. Brent’s price had been on the rise ever since the pipeline closed, and stood at $64.56/bbl at the end of Wednesday’s trading day, up $2.12/bbl w-o-w and $2.34/bbl m-o-m.