Oil prices rose this evening after the shutdown of a major pipeline supplying Canadian oil to the United States, but a leading forecaster said world demand would remain tepid.
US crude was up $1.65 a barrel to $75.90 after Enbridge said pipeline 6A remained shut as the clean-up of an oil leak continued near Romeoville, Illinois. In contrast, Brent crude oil in London was up just 49 cents a barrel at $79.96, with concerns about the strength of global demand still affecting sentiment.
The International Energy Agency (IEA) said global oil consumption growth was expected to increase a little this year but slip in 2011 and that fuel consumption could be much weaker if the world economy slows.
The agency, which advises major industrial countries on energy policy, said global oil supply was more than sufficient to meet demand, highlighting high levels of industry stocks across the developed world.
Canada is the largest oil exporter to the US, and Enbridge's pipelines carry the lion's share of that crude. Enbridge closed its 670,000 barrel-per-day (bpd) Line 6A, the largest of the company's major three, after a leak was discovered near Romeoville. The duct accounts for 7% to 8% of total US crude imports.
