Oil closes more than 2% higher as supplies decline

Oil drilling rigs

Oil prices closed higher today, Dec. 12, as pipeline shutdown in North America continued and the outlook for crude demand was assessed.

Investors rushed to buy crude after prices fell to the lowest level this year, with oil down by 11% in the past week to the lowest levels since December 2021.

TC Energy announced that it is continuing efforts to resume the work of the Keystone pipeline, which connects fields in Canada with refining platforms in the United States, affecting the flow of about 600,000 barrels per day.

Investors are watching developments on Russian oil production, after President Vladimir Putin threatened to cut his country's crude production in response to the Group of Seven's decision to impose a price cap.

The markets also monitor developments in oil demand, in conjunction with China's easing of lockdown restrictions related to COVID-19.

Brent crude futures for February delivery rose by 2.4%, or $1.89, to settle at $77.99 a barrel.

WTI crude for January delivery rose 3%, or $2.15, to $73.17 a barrel.