Oil prices rise Monday as an essential US pipeline remains closed, while Russian President Vladimir Putin threatens to throttle back oil production in response to Western nations’ introduction of a price cap on Russian oil, Reuters reports.

Compared to the price trading closing Friday afternoon, oil prices have gone down, however.

A barrel of European reference oil Brent goes for USD 76.55 Monday morning against USD 76.89 Friday afternoon. US counterpart trades concurrently for USD 71.60 per barrel against USD 72.38 Friday afternoon.

”Oil prices are higher as the Keystone pipeline remains shut, China’s Covid controls ease and on concerns that Russia could reduce output,” says senior market analyst at OANDA Edward Moya.

On Sunday, Canadian operator TC Energy informed that the company had yet to find the cause of the leak in the Keystone pipeline that stretches from Canada to the US. No decision has been made as to when the pipeline will be back online.

The key pipeline transmits 622,000 barrels of oil per day. Lower supply due to its closure serves to push prices up.

Meanwhile, Russian President Vladimir Putin said Friday that Russia could potentially cut production and would refuse to sell oil to any country that would adopt a price ceiling on Russian oil.

The price cap on Russian oil, introduced by G7 nations and the EU, which has imposed numerous sanctions on Russia, have had limited influence on global oil markets thus far, according to an analyst from ANZ.

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