By Laila Kearney
NEW YORK (Reuters) – Oil closed lower for a fifth straight session on Thursday as the prospect of a major pipeline restarting service would return a large amount of oil to the market at a time when the global economic slowdown is raising fears about fuel demand.
Brent closed at $76.15 a barrel, losing $1.02, or 1.3%. US Crude Oil (WTI) ended at $71.46 a barrel, down $0.55, or 0.8%.
“I would tend to think that any minute here you’re going to see a headline saying Keystone will come back sooner or later,” said Bob Yawger, director of energy futures at Mizuho in New York.
Canada’s TC Energy said it closed its 622,000 barrel-per-day Keystone pipeline, which is the main line transporting Canadian heavy crude from Alberta to the U.S. Midwest and Gulf Coast, following a leak in a creek. from Kansas.
Oil prices rose after the company announced the closure, which took place around 11 pm on Wednesday (Brasília time). Although TC Energy did not announce when the pipeline would reopen, market sentiment has since changed.
“We’re back looking at the demand outlook,” said John Kilduff, partner at Again Capital LLC in New York.
(Additional reporting by Jeslyn Lerh in Singapore, Alex Lawler)
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