Bad news on the oil front

Eight percent of U.S. oil production just got shut down. It is already affecting European markets. We'll see how this plays out. (Bloomberg)

Aug. 7 (Bloomberg) -- Crude oil surged 1.7 percent to $76 a barrel after BP Plc shut Alaska's Prudhoe Bay field, the largest in the U.S., because of corrosion in a pipeline.

An inspection completed in July found a leak in a pipeline, London-based BP said in a statement today. The shutdown will take ``days'' to complete, a company spokesman said. The BP- operated Prudhoe Bay field produces 400,000 barrels a day, about 8 percent of U.S. production.

UPDATE: Expect about a 3 to 5 cent increase in gas prices in the short term, according to this CNN article. James Hamilton has more.