Brent oil price climbs on latest Alaska oil pipeline leak

10 January 2011 10 January 2011

BonTrade

Brent oil prices open Monday’s trading session higher, near $94 a barrel as news emerges from the US that an oil leak shut an Alaskan pipeline that carries 12 percent of US crude oil output.

Latest Brent Oil Price

In London, Brent crude oil futures for February 2011 delivery was trading at $93.77 a barrel, 07.30 GMT on the ICE Futures Exchange after bouncing a dollar higher, shortly after open.

Alaska Oil Pipeline Running at 5 Percent Capacity

Alyeska Pipeline Service shut down the pipeline system it operates in Alaska on Saturday after workers found oil leaking into a basement at a pump station on the North Slope. It then told BP and other oil companies in the region to reduce their output by 95 percent.

This latest event may well give a short term boost to Brent and WTI oil prices, increasing the chances of oil prices making a run back to $100 a barrel.

“Alot depends on how long the oil pipeline is shut down. If the oil leak can be fixed in a matter of days then it’s not really a serious problem and the market may be overreacting now.” said Victor Shum, oil analyst at Purvin & Gertz.