Oil slides on easing of pipeline outage concerns

Oil prices dropped on Tuesday as worries of prolonged outage in Colonial Pipeline, the United States’ biggest fuel pipeline system faded, while several U.S. Gulf Coast refiners slashed production.

U.S. West Texas Intermediate crude futures were down 0.94%, or 61 cents, at $64.31 per barrel, following a 2-cent gain on Monday.

Brent crude futures fell 0.82%, or 56 cents, at $67.76 per barrel, after rising 4 cents in the last session.

U.S. gasoline futures contract and U.S. heating oil futures, which rose after the outage, recovered on the prospect of the restart.

Colonial Pipeline, which transports over 2.5 million bpd of diesel, gasoline, and jet fuel, shut down its network on Friday after being the victim of a cyber attack. 

Meanwhile, U.S. crude stockpile dropped by 2.3 million barrels in the week ended May 7, following an 8-million barrel decline the previous week. 

Gasoline inventories are forecasted to have dropped by 400,000 barrels. OPEC is expected to release its monthly oil market report on Tuesday.