Fundamental Oil Report (2011-01-10)

By @ibtimes on

NewsCrude rises near $89 following Alaskan pipeline leak PreviousForecastAnalysisCrude today traded above $89 per barrel following a pipeline leak in Alaska that has affected crude output and supporting crude to the upside.

Crude today hovers around $89 per barrel recording its highest around $89.87 and lowest around $88.62, while currently trading around $88.75 per barrel.

A North Slope pump station for Alyeska Pipeline Service Co. in Alaska was shutdown on Saturday, following a leak that reduced the slope of oil production to 5%, specifically since this line provides the US with 12% of its overall oil production rate; although the leak has been contained the company does not know when the pipeline would restart operations. If the pipeline is down for an extended period of time, analysts expect prices to jump further.

Crude last Friday traded around $88 per barrel recording its highest around $89.45 and lowest around $87.23 per barrel, closing around $88.37 per barrel. Futures fell last Friday by 3.7% as the greenback climbed following the weaker than expected jobs figures; analysts expect crude to push past $100 per barrel if production drops 5% until March or April.

As for NYMEX as of 04:31 EST; motor gasoline rose $0.36 recording $242.180 per gallon; heating is trading around $249.840 per gallon inclining $0.49; whereas natural gasoline also climbed $0.38 to record $4.439. In London, Brent futures rose $0.46 to record $93.760.

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