Oil rose as a key pipeline linking Kazakh fields to Russia's Black Sea coast halted loading after one of its three moorings was damaged in an attack over the weekend.

Brent traded near $63 and earlier rose as much as 2.3%. The Caspian Pipeline Consortium carries most of Kazakhstan's crude exports, which have averaged 1.6 million barrels a day so far this year. Following the explosion, the mooring is severely damaged, a person with knowledge of the matter said. 

CPC said in response to questions about the damage that "any further operations are impossible" at the mooring, reiterating comments given on Saturday. Ukraine hasn't commented on the incident at the facility, although it confirmed separate attacks on an oil refinery and tankers over the weekend.

Oil prices are coming off of a monthly drop, with futures under pressure from the prospect of a significant oversupply next year. Still, geopolitical tensions from Russia to Venezuela — where President Trump warned airspace should be considered closed over the weekend — are adding to the bullish risks for prices. 

"While the outlook for the market is bearish with expectations of a large surplus, lingering supply risks mean that it is taking longer for these bearish fundamentals to be fully reflected in prices," said Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV.

The incident came after the OPEC+ producer-group led by Saudi Arabia reiterated a three-month plan to halt output hikes in the first quarter of next year. OPEC+ again said the move reflected weaker seasonal market conditions. A major surplus is expected in the early part of next year.

Brent for February settlement advanced 0.8% to $62.86 a barrel at 8:49 a.m. in New York. WTI for January delivery gained 0.8% to $58.99 a barrel.

Source : Bloomberg