The price of spot crude oil rose yesterday, moving above the $91 level as the closure of an Alaskan pipeline raised supply concerns. Spot crude oil rose as high as $91.38 before ending the day at $91.16 after opening at $89.18.
The Trans-Alaska Pipeline was shut down this past Saturday due to a leak that should be plugged towards the end of the week with the pipeline back up and running shortly after. With the cut in the Alaskan pipeline, the flow of oil from Alaska virtually has come to a standstill with 95% of the state's oil transportation dependent on the pipeline for deliveries.
Today crude oil traders will be eyeing key supply data from the US with the release of the weekly crude oil inventory report. Market expectations are for a slight increase of 0.4 Mn barrels. This is in contrast to last week's large unexpected drawdown of inventories by 4.2 Mn. Traders should note the short term support and resistance levels for spot crude oil rest at $86.80 and $92.50.