Supply Disruption Concerns Fail to Raise Oil Price

Reuters reported that oil declined despite fears that conflict in the Middle East may disrupt supply. Gains were suppressed in part due to the expected restart of TransCanada Corp.’s (TSX:TRP) Keystone pipeline.

As quoted in the market news:

Brent December crude edged down 49 cents to $109.65 a barrel by 1:40 p.m. EDT (1740 GMT), having fallen to a session low of $109.47, the lowest Brent price since Oct. 4

Expiring U.S. November crude was down 93 cents at $89.12 a barrel, back below $89.98, the 100-day moving average, a technical level monitored by chart-watching analysts and traders. December was down 97 cents at $89.47.

Brent’s premium to U.S. crude CL-LCO1=R increased and moved back above $20 a barrel.