Oil prices are bouncing higher at the start of the week’s trading

Oil prices rose more than 1% in early Asian trade on Monday as a major pipeline carrying crude oil between Canada and the United States remained closed as Russian President Vladimir Putin threatened to cut production in response to the West imposing a cap on Russian oil export prices.

Brent crude futures were up 83 cents, or 1.1%, to $76.93 a barrel by 00:20 GMT.

US West Texas Intermediate crude was at $71.92 a barrel, in up 90 cents, or 1.3%.

Canadian company TC Energy said on Sunday it had not yet determined the cause of the Keystone pipeline oil spill last week in the United States, without providing a timetable for when the pipeline will resume operations.

The Keystone Line, with a production capacity of 622,000 barrels per day, is a major thoroughfare for transporting Canadian heavy crude from Alberta to refineries in the US Midwest and Gulf Coast and for export.

Meanwhile, Putin said on Friday that his country, the world’s biggest energy exporter, could reduce its oil production and would refuse to sell oil to any country that imposes a price ceiling on Russia agreed by the G7 countries .

ANZ Group analysts said in a note that although the uncertainty surrounding the EU sanctions on Russian oil and the associated price cap keeps price volatility high, the sanctions have had little impact on global markets so far.

Last week, Brent and WTI crude saw their biggest weekly losses in months, hitting their lowest levels since December 2021 on concerns about the global recession and the impact on oil demand.

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