11 Jan 2011

Oil prices rise after Alaskan pipeline leak

12:49 pm on 11 January 2011

Oil prices have risen by more than 1% per barrel as the main pipeline in Alaska remains all but closed for a third day following a minor leak.

Only 5% of typical output has flown through the Trans-Alaska Pipeline since Saturday following a spillage at one of its pump stations. The BBC reports the pipeline carries almost 12% of US crude output.

US light crude ended up $US1.22 or 1.4% per barrel at $USUS89.25. Brent crude rose $US2.37 to settle at $US95.70 p/b.

The Department of Environmental Conservation in Alaska said no restart date had been set, but the plan was to build a bypass pipeline for the section in question.

The 1280km Trans Alaska Pipeline is operated by Alyeska Pipeline Service, and typically carries 630,000 barrels per day.

Alyeska is 47% owned by BP. ConocoPhillips has a 28% stake, and ExxonMobile 20%.