(1888PressRelease)
December 04, 2007 - The reopening of the biggest Canada-US oil pipeline and speculation that Opec will increase production has seen crude oil prices fall below US$90 per barrel.
The Enbridge operated network closed earlier this week after a fatal explosion shut three of the four pipelines and it is estimated oil shipments were cut by around 1.5 million barrels a day.
After soaring close to US$100 two weeks ago, prices subsequently saw the biggest weekly droop in over two years.
"The market stopped panicking once three of the four pipelines were restarted," Robert Laughlin, a senior broker at MF Global in London told Bloomberg.
"We could see Opec providing between a half million and a million barrels next week."
Political pressure from the US is said to have encouraged Saudia Arabia to confirm it will add 500,000 barrels of spare capacity in December.
Opec increased export by two per cent in the month to December 15th, according to consulting firm Oil Movements.
Further analysis of the global oil market could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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