WTI oil trading near $101 on US Keystone pipeline shutdown

WTI oil futures open Tuesday’s trading session back near $101 a barrel after a pump station leak forced a shutdown of the US Keystone crude pipeline which carries US oil to Cushing, the largest storage hub for oil in America.

Latest WTI Oil Price

US Light crude oil futures for July 2011 delivery was trading at $101.09 a barrel, 07.05 GMT this morning in electronic trading on the NYMEX.

WTI oil prices also gained on forecasts that consumer confidence in the US increased to the highest level in three months.

Keystone Pipeline Issue

TransCanada shut the 591,000 barrel a day Keystone pipeline after a “an issue with a fitting” caused a 40 barrel oil leak at a pump station, according to an emailed statement from Terry Cunha, a company spokesman. There was no fault on the pipeline itself, he said. US oil futures have gained as much as 1 percent this morning on the news.

WTI Oil Back at $120 a Barrel?

“Market participants are looking for more bullish factors rather than bearish factors as the correction is over. That’s why the market is focusing on such news even if it’s not really having a significant impact on supplies.” said Tetsu Emori, a commodity fund manager at Astmax, Tokyo, who predicts prices may rise to about $115 to $120 a barrel.

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WTI oil trading near $101 on US Keystone pipeline shutdown