2017.12.1501:25:00UTC+00Oil on Steady Footing on Tighter Market

Oil markets were steady as the Forties pipeline shutdown in the North Sea and the ongoing OPEC-led output cuts provided support for prices while increasing output from the U.S. capped prices.

U.S. WTI crude futures stood $57.18 per barrel, up 14 cents from their last close. Brent crude futures traded at $63.34 per barrel, up 3 cents from their previous settlement.

According to traders, in general, markets were well support by efforts led by OPEC and Russia, along with other non-OPEC producers to limit supplies to drive up prices.

The ongoing closure of the Forties pipeline, which transports North Sea oil variety to Britain, was also driving up prices, traders said. Jefferies said Ineos announced force majeure on crude deliveries after the discovery of the pipeline leaks, indicating that repairs may need several weeks.

While the outage will only affect majority of the North Sea region, it is a global matter as it provides a part of the supply that form the basis for the Brent price benchmark.

Goldman said the market conditions enables major oil firms to enter a positive earnings-revision cycle that will allow the so-called Big Oil to re-establish capital at double-digit profits.

Meanwhile, U.S. oil production is undermining the impact of an OPEC-led pact to limit production. Oil output in the U.S. has risen by 16 percent since mid-216 to 9.78 million bpd, near the levels of Russia and Saudi Arabia, the top global producers.