(RTTNews) - The price of crude oil moved up Friday morning after a major oil transporter said it has shut down one of its big pipeline carrying oil to the U.S.
Light Sweet Crude Oil (WTI) futures for October delivery were up $1.34 to $75.59 a barrel. Yesterday, oil ended lower despite bigger-than-expected drop in U.S. weekly jobless claims and an unexpected drop in U.S. crude inventories.
Oil pipeline operator Enbridge Inc. announced that it has shutdown its 670,000 barrels per day crude supply pipeline line after a leak was discovered.
Earlier today in its monthly report, the IEA maintained its stance on global oil demand based on stronger data from OECD countries but warned of significant downside risks on fears that world economic recovery could stall. However, it noted that July oil inventories were near the record level that existed in August 1998.
Thursday, the EIA said U.S. crude oil inventories were down by 1.90 million barrels to 359.90 million barrels in the week ended September 03, contrasting analysts expectations for a build of 1 million barrels.
Meanwhile, the U.S. dollar was ticking lower versus the euro and paring some of its overnight gains against sterling, while continuing to linger around its lowest level since 1995 versus the yen. The euro remained firm despite news that Deutsche Bank is set to announce a rights issue for about $11 billion, which has raised concerns over the health of the euro zone banks.
Today traders will look to July wholesale inventories data from the U.S. Economists expect the inventories increased 0.4% for the month.
