Source: Thomson Reuters Datastream / Michael Ovaska | REUTERS GRAPHICS
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Oil prices jumped Tuesday after the shutdown of a North Sea pipeline knocked out significant supply from an already tightening market, while world stocks took a break from a three-day rally.The jump in Brent prices widened its premium to WTI prices to as much as over $7 a barrel, the highest premium since May 2015 and up from around $5 last week, making U.S. oil exports more attractive.The divergence in Fed and ECB policy was supposed to be bullish for the dollar, given it had widened the premium offered by U.S. two-year yields over German yields to 256 basis points from 188 basis points this time last year.The euro is currently up 12 percent on the dollar this year, while the dollar is down 8 percent on a basket of currencies -- an indication interest rate differentials aren't everything in forex.
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