Crude Oil Rises After Polish Pipeline Operator Detects Leak on Druzhba – Investing NewsEverything

By Geoffrey Smith 

Investing.com — Crude oil prices rose by more than a in early trade in Europe on Wednesday after Polish pipeline operator PERN said it had detected a leak on the biggest export pipeline out of Russia.

In a statement on its website, PERN said that its automation systems had detected a leak in the Przyjaźń stretch of the Druzhba pipeline, some 70 kilometers west of the town of Plock.

“This is the main route through which crude oil reaches Germany,” PERN said, adding that it still hasn’t established the cause of the incident. It immediately reduced flows through the damaged thread, which is one of two strands running along that route. The second strand is working normally it added.

The news will raise fears of further deliberate acts to cut the supply of Russian fuel to Europe, raising the pressure on the European Union’s economy as the northern hemisphere’s winter draws in.

By 02:45 ET (06:45 GMT), stood at $89.81 a barrel, just below their intraday high of $89.84 and up 0.5% from late on Tuesday in the U.S. Immediately before the news, it had been trading at $88.63 a barrel. By the same token, rose 0.6% to $94.87 a barrel.