CNBC energy producer Judy Gee contributed to this post.
Supply problems are lifting oil prices over $111 a barrel this morning, a sharp reversal from overnight trading when oil briefly headed south. Here's a breakdown of the sticky supply concerns we're dealing with today.
In the U.S., news of the closure of Shell's Capline oil pipeline is lending support to prices. Some 650 miles long, that critical pipeline pumps roughly 1.2 million barrels per day and takes crude supplies from the U.S. Gulf Coast to the Midwest.
In Nigeria, ENI is reporting the loss of 5,000 barrels per day in the oil rich section of the Niger Delta due to sabotage. ENI is Italy's largest oil company. And once again, we see the dollar's decline. Volume is expected to play an important role in today's energy trades.
CNBC contributor and Tradition Energy's Addison Armstrong says: "The battle around the $110 level towards the end of the last was accompanied by two of the largest trading volumes of the year, suggesting the bulls have plenty of ammunition to push prices back above $112 a barrel."
The key resistance level of the day is $112. But Joe Terranova, director of trading at MBF Clearing Corp., also recommends keeping an eye on $108.92 on the downside.
Settling below that mark would end this month's pattern of higher daily lows for the last nine sessions.
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