Oil Prices Drop Today: $118 a barrel
Oil prices fell 29 April amid expectations that a supply disruption in the U.K. would soon be resolved and as the U.S. dollar held its ground against the Euro.
As per the news I am reading, a pipeline that normally carries 700,000 barrels of crude a day to the U.K. is likely to be back in operation soon. If you had seen, crude futures rose to a record $119.93 a barrel yesterday as labor actions in Nigeria and Scotland threatened crude supplies.
The Forties Pipeline System was shut down by BP PLC because of a 48-hour walkout by employees at a refinery in central Scotland. The refinery powers the onshore processing plant for North Sea crude coming through the network, and once the strike is over later Tuesday, the pipeline system should resume operation within a few days.
See what Mark Pervan, a senior commodity strategist at the ANZ Bank in Melbourne says about this -
The Forties pipeline shutdown in the North Sea is fully priced in and the market may be taking some mild profits on the basis that we’ll see a return in the near term
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[...] of an oil workers’ strike in Nigeria. If you read, we have updated couple of days back on Oil prices rising to $118 a barrel on 29th [...]