WTI Trades Near Six-Week High, Exxon Shuts Crude Pipeline

West Texas Intermediate crude traded near the highest close in six weeks after capping the longest rally this year on faster-than expected U.S. economic growth. Exxon Mobil Corp. (XOM) shut a pipeline that carries oil to the U.S. Gulf Coast.

Futures fluctuated after a fifth day of gains through March 28 took last quarter’s advance to 5.9 percent. The Pegasus pipeline, which was shut March 29 after a leak was detected in Arkansas, will need to be excavated as Exxon looks to determine what caused the breach, a spokeswoman said. Brent’s premium to WTI was little changed. U.S. gross domestic product rose at a 0.4 percent annual rate, up from prior estimate of 0.1 percent, the Commerce Department reported last week.

WTI for May delivery rose 5 cents, or 0.1 percent, to $97.28 a barrel on the New York Mercantile Exchange at 7:05 a.m. in Singapore. It closed at $97.23 on March 28, the highest settlement since Feb. 14 and the longest rally since Dec. 20. Prices increased 3.8 percent last week and 5.6 percent in March. The market was closed March 30 for Good Friday.

Brent for May settlement climbed 6 cents, or 0.1 percent, to $110.08 a barrel on the London-based ICE Futures Europe exchange. Prices gained 2.2 percent last week. They fell 1.2 percent in March and 1 percent in the quarter. The European benchmark’s premium to WTI widened 6 cents to $12.85 a barrel.

(Source: Bloomberg)