Go Finance Report - Crude oil prices jumped back to the level of USD89 per barrel in Asian spot market this afternoon after a pipeline leak in Alaska that cut oil production in the region.
As quoted by the Associated Press (AP), Monday (01/10/2011), price of oil for February delivery rose to USD1, 35 per barrel to USD89, 38 per barrel in trading the New York Mercantile Exchange (Nymex). Earlier at the end of last week, oil was sloping to the level of USD88, 03 per barrel.
Alyeska Pipeline Service Co. declared leaking trans-Alaska pipeline along 800 miles or 1300 kilometers (km) which usually carry 630-650 thousand barrels per day since last Saturday to make production in the region decreased approximately five percent.
The energy consultant Schork estimates crude oil price surge is likely only will be temporary unless the pipe was broken for a long time.
"We do not believe news like this can push the oil price is above USD100 per barrel. However, if production is reduced to five per cent until March or April, then we'll change his mind," said Schork.
In other Nymex trading in the contract of February, heating oil rose 2.4 cents to $ 2, 51 per gallon while gasoline futures rose 2.3 cents to $ 2, 44 per gallon and natural gas futures for December fell two cents to $ 4, 40 per 1,000 cubic feet. Meanwhile in London, Brent crude rose 79 cents to USD94, 12 per barrel on the ICE Futures exchange. (GoFinance)
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