Oil prices rose modestly on Monday, after spiking by almost $2 a barrel earlier in the day, after reports that an Alaskan pipeline -- shut down on Saturday due to an oil leak -- will reopen within days.

The Wall Street Journal, citing an unnamed person familiar with the pipeline's operation, reports the Trans-Alaska Pipeline system could be up and running before Friday, less than a week after the Alyeska Pipeline Service shut down the 800-mile network. BP Plc (BP) and Exxon Mobil (XOM) were among companies that shut down production on Alaska's North Slope, which accounts for about 9% of U.S. oil output, the Journal said.

Oil prices had already been surging in recent weeks on a combination of tightened petroleum inventories and what may be a slight resurgence in the U.S. economy, which is increasing demand and causing some analysts to predict that oil will hit $100 a barrel early this year. U.S. commercial crude inventories totaled 335.3 million barrels for the week ended Dec. 31, down 4.2 million barrels from a week earlier, according to the U.S. Energy Information Administration (EIA).

Oil for February delivery rose $1.22 a barrel, or 1.4%, to $89.25 after touching $89.98 earlier Monday.

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larryatmanda

It would be interesting to know the shipping logistics of North American crude production to-day.I believe at one time almost all the oil from the North Slope was being shipped to Japan and Korea and being replaced by middle east crude coming into Texas, Louisiana, and the east coast refineries.This was being done because most U.S. refineries were in these areas.A major portion of crude comes into northern refineries from Canada. Shipping logistics from the oil patch to the processors are interesting.

January 12 2011 at 2:20 AM Report abuse rate up rate down Reply
imme534333

The world has reached or will reach peak oil production. Demand for oil ,on the other hand has and will go up for the foreseeable future. Given the reality that the oil that is easiest and cheapest to recover is used first. Do you think that the price of oil will go up or down over time?

January 11 2011 at 4:59 PM Report abuse rate up rate down Reply
imme534333

Peak oil is a fact of life. Oil fields reach a peak and then decline over time. Countries, such as Mexico, or the United States reach a peak and then decline over time. The North Slope reached it's peak production Around 1988. from the 2 million barrels a day to just something over 670 Thousand today. Not only does the production go down but the price per barrel goes up. It doesn't take a conspiracy of oil producers to get the price of oil to rise. Just the facts of life.

January 11 2011 at 4:34 PM Report abuse rate up rate down Reply
richperry05

lets see if the price of oil goes down like it when up...................

January 11 2011 at 11:03 AM Report abuse +3 rate up rate down Reply
imme534333

The Joint Pipeline Office was organized in 1990 in answer to concerns about corrosion of the pipe and potential spills. The office is composed of nine state and federal management agencies who issue permits and monitor operation of the pipeline to encourage environmental safety.

Alyeska Pipeline Service Company is responsible for the design, construction, operation and maintenance of the pipeline. The company employs more than 2,000 people in Alaska, including Alyeska workers and sub-contractors. In 1997, Alyeska's main offices split into three business units, one of which is located in South Fairbanks. About 300 employees moved to Fairbanks from Anchorage as Alyeska made a move to position more of its workers closer to the pipeline.

January 11 2011 at 10:10 AM Report abuse rate up rate down Reply
jkennedy806

Only 9%, I thought when this pipeline was originally created it was suppose to solve all US oil dependency problems. And where are all those oil reservces Bushy 2nd was sitting on, do we still have them? I would suggest very strongly to the scared and timid Washington politicos that we start opening up production to at least 25% if not 50% Stuff it BP and Exxon, and open up those reserves and cash in or at least make OPEC bring down prices. Or don't buy from them. I am tired of yack yack yackety yack out of Washington.

January 11 2011 at 9:39 AM Report abuse -1 rate up rate down Reply
billcarol88

If the big oil companies would take some of their billions in profit and maintain these pipelines they would not leak. A little maintenance is expected with the profits they make. This is just another way to shaft the American people.

January 11 2011 at 7:32 AM Report abuse +2 rate up rate down Reply
markdonnak

Doesn't most of the oil from the Alaska pipeline go directly to Japan?.

January 11 2011 at 6:38 AM Report abuse rate up rate down Reply
dterraman

$100 oil...mmm mmm mmm

January 11 2011 at 2:07 AM Report abuse -1 rate up rate down Reply
johnhen56

The "analysts" say "oil may top $100 per barrel" so since we, the driving public "think" it will go up the oil companies and OPEC will raise the price because we are "expecting it"

January 10 2011 at 11:58 PM Report abuse +2 rate up rate down Reply