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August 7, 2006
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.
Posted by William Polley at August 7, 2006 2:18 AM
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