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“We should see pipeline flows drop in the coming two weeks,” Matt Smith, director of commodity research at shipping tracker ClipperData, told the WSJ.
In overseas markets, Nigeria production problems have also helped support prices. On top of large pipeline that was already shut down, Shell Petroleum Development Co. of Nigeria halted exports from a pipeline that carries 150,000 barrels per day of oil due to a leak.
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Moreover, political volatility in Libya has also helped support oil prices. Last week, a major port was blocked, reducing the country’s oil production by 140,000 barrels to 220,000 barrels per day.
Potential traders, though, should keep in mind that these disruptions may be short-lived and ongoing output from major Organization of Petroleum Exporting Countries, like Saudi Arabia and Iran, will pressure prices.
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United States Oil Fund