Oil rises as Russian pipeline halt revives supply fears | Reuters

Oil rises as Russian pipeline halt revives supply fears | Reuters

Oil rose over $1 a barrel on Tuesday, reversing an earlier decline, after Russia said oil exports to Europe via the southern leg of the Druzhba pipeline had been suspended since early August, reviving concern about tight supply.

Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline leg because Western sanctions had prevented a payment from Moscow for transit fees from going through. read more

"Not that we need it at this point but it's another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia," said Craig Erlam of brokerage OANDA.

Brent crude was up $1.28, or 1.3%, to $97.93 a barrel at 1136 GMT, after earlier falling as low as $94.90. U.S. West Texas Intermediate (WTI) crude gained $1.18, or 1.3%, to $91.94.

The Druzhba development comes as supply worries had been abating amid growing concern about a recession. Earlier, oil was under pressure from progress in talks to revive the Iran nuclear accord, which would allow higher Iranian oil exports.