|News||Oil hovers above $89 as Alaskan leak still the main concern|
|Analysis||Crude traded above $89 per barrel today as traders maintain their gaze on the leak in Alaska, which has been shutdown for repairs, thereby crude production was cut from the second largest energy consumer in the world.|
Crude today hovers around $89 per barrel recording its highest around $89.63 and lowest around $89.11, while it currently is trading around $89.18 per barrel.
Black gold managed to climb further due to the leak in Alaska, which normally carries around 620 thousand barrels per day, was shut down on Saturday affecting the Northern Slope region, since 95% of oil production was cut in the area. Meanwhile, Alyeska Pipeline Service Co. stated that they are working around the clock on the line to restore oil production as soon as possible, while no restart date was provided yet.
Crude yesterday traded above $88 per barrel recording its highest around $89.87 and lowest around $88.11 per barrel, closing around $89.33 per barrel. Futures climbed yesterday paring losses due to the Alaska pipeline leak; analysts expect crude to push past $100 per barrel if production drops 5% till March or April, where OPEC stated that it will not hold an emergency meeting if crude does manage to hit $100 mark.
On our economic agenda today, traders await for the release of the API report later on today and EIA tomorrow.
As for NYMEX as of 03:30 EST; motor gasoline fell $0.34 recording $244.600 per gallon; heating is trading around $255.390 per gallon declining $0.09; whereas natural gasoline shed $0.36 to record $4.383. In London, Brent futures dropped $0.24 to record $95.470.