Commodity Daily News

Oil Rallies as Alaskan Pipeline Shuts Down

Crude oil fell last week from $92.00 a barrel to as low as $87.20 in Friday's session. However, in early trading Monday, crude corrected its losses, and the commodity is currently trading near $89.00 a barrel.

Crude oil prices are currently climbing for the first time in three days after a leak in an Alaskan pipeline caused that line to be temporarily shut down. The closure compelled companies such as BP Plc to suspend about 95 percent of production from the North Slope area, and as a result boosted oil prices.

Looking ahead to this week, traders should follow the developments regarding the Trans-Alaska Pipeline System, as this is likely to affect energy prices for the next few days. In addition, traders should follow the leading economic releases from the U.S. and the euro zone as these usually have a significant impact on crude prices.