The price of oil has once again moved up. This time the change was prompted by a pipeline outage in the North Sea, which led to a significant decrease in the supply of oil. As we have noted in previous articles, the price of oil is very sensitive to supply changes, rising when supply is lower, and vice versa.
The pipeline owned by UK’s Forties was shut down when it was found it has cracks. Thanks to this reduction of supply, the oil marked kicked off and the Brent crude was able to pass the level of $65 per barrel.
The price increase of oil also helped commodity stocks around Europe. Other trading instruments affected by the price increase of oil were pairs including the Canadian, Australian, and New Zealand dollar, as all three currencies generally tend to rise with oil prices.
