Oil ShortagesAny supply disruptions now cause major problems. How fast can North America make a switch to nuclear? Strathmore is well positioned for more gains as they spin off their exploration properties, shares of which we should get free.
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NEW YORK (Reuters) - Oil prices soared above $60 a barrel on Wednesday as a rash of snags affecting U.S. oil refineries, pipelines, and an oil field sparked worries of a supply crunch in the world's biggest energy consumer.
The operational problems came against the backdrop of rising tensions between the United States and Iran, the world's fourth-largest oil exporter, over its nuclear program.
U.S. crude settled up $1.22, or more than 2 percent, to $60.07 a barrel -- the first time it has settled above $60 since January 2. London Brent gained $1.37 to $59.35.
"Prices jumped here on refinery and pipeline issues," said Kyle Cooper, director for research at IAF Advisors.
A key fuel pipeline supplying the U.S. Northeast with gasoline and diesel was shut down due to a spill in Indiana, the line's operator, TEPPCO (NYSE:TPP - news), said on Wednesday, pushing up fuel prices in the region.
Meanwhile, a fire over the weekend at Valero Energy Corp.'s (NYSE:VLO - news) oil refinery on the Texas panhandle was expected to leave the plant shut for several weeks, cutting back fuel production roughly 170,000 barrels per day, the company said.
The outage comes amid a raft of other refinery problems in North America, including a recent fire at Imperial Oil's (Toronto:IMP.TO - news) plant in Nanticoke, Ontario, which have raised worries of a crunch when driving demand picks up this spring.
Adding support to prices, oil major BP (BP.L) said it shut its Northstar oil field in the Beaufort Sea off Alaska for unplanned repairs that could keep it out of service until next week. The field has a capacity to produce nearly 50,000 barrels of oil per day.