US crude for March delivery eased below US$92/barrel today, still feeling pressure form the restart of the Trans Alaska Pipeline.
The pipeline, which transports 12% of the country’s oil output, was shut down after a leak was discovered.
As a result, producers operating in the Prudhoe Bay fields had to cut production by 95%, raising supply concerns.
The restart took place on Monday after a bypass replacing the damaged section of the pipeline was installed.
Yesterday it was reported that the oil supply via the pipeline exceeded expectations with 525,000 barrels transported per day.
Oil prices received support from a decline in the US dollar, which made the dollar denominated crude cheaper for holders of other currencies.
US light, sweet crude for February delivery fell to US$90.93/barrel. Crude for March delivery, which is currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), declined to US$91.82/barrel.
March Brent Crude last traded at US$97.79/barrel.
BP (LON:BP) rose marginally, while fellow supermajor Shell (LON:RDSB) added 1%.
BG Group (LON:BG) and Cairn Energy (LON:CNE) headed in the opposite direction, shedding 1.8% and 1.1% respectively.
Tullow Oil (LON:TLW) posted a small loss.
Engineering firms Amec (LON:AMEC) and Petrofac (LON:PFC) declined 1.1% and 1.4% respectively.
Heritage Oil (LON:HOIL) and Soco International (LON:SIA) led the midcaps with gains of over 3%.
Melrose Resources (LON:MRS) and Premier Oil (LON:PMO) tacked on 1%.
JKX Oil & Gas (LON:JKX) and Salamander Energy (LON:SMDR) were in the red with losses of 1%.
Service company Wood Group (LON:WG) declined marginally.
Iraq operating Petrel Resources (LON:PET) and oil and gas sector focused investor Solo Oil (LON:SOLO) were among the top performing juniors, rising 5%.