Crude oil futures ended higher on Wednesday, magnifying their previous sessions’ rally, as an outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook amid worrisome geopolitical troubles in Russia and the United Arab Emirates. Turkey’s state pipeline operator Botas said that it cut oil flows on the Kirkuk-Ceyhan pipeline after an explosion on the system. The cause of the explosion is not known. The pipeline carries crude out of Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), to the Turkish port of Ceyhan for export.
Benchmark crude oil futures for February delivery rose $1.22 or 1.43 percent to settle at $86.65 a barrel on the New York Mercantile Exchange. Brent crude for March delivery increased $0.93 or 1.06 percent to settle at $88.44 a barrel on London's Intercontinental Exchange.