SINGAPORE (Commodity Online) : Global oil prices continued its northern journey Monday as concerns remained over stockpile shortage due to shutdown of the biggest Canada-U.S. crude pipeline.
Light sweet crude for October delivery was seen trading at $77.23 a barrel at 12.00 noon Singapore time while Brent crude was seen at $78.58 a barrel in London.
Canada is the largest oil exporter to the U.S. and Enbridge's pipelines carry the lion's share of that. The shutdown of the company's biggest line might help ease a glut in Cushing storage.
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The leak has the potential to reduce flows to Cushing by around 300,000 bpd. Enbridge Energy Partners LP closed the pipeline Thursday afternoon after it began leaking in suburban Chicago.
Analysts said reports of positive industrial output from world’s second largest oil user, China also lifted the black gold.
China's industrial output accelerated 12.3 percent in August from a year earlier, after gaining 10.8 percent in July, according to National Bureau of Statistics.
The dollar weakened and Asian equities rose after positive economic signs also came from top oil consumer the United States, where wholesale inventories surged the most in two years in July, according to a report on Friday
On Friday, oil prices surged after a pipeline that delivered oil to U.S. Midwest refineries was shut down, raising questions about how long the supply may be disrupted.
Benchmark oil for October delivery rose $2.20 to settle at $76.45 a barrel on the New York Mercantile Exchange. In London, Brent crude rose 69 cents to settle at $78.16 a barrel on the ICE Futures exchange.
