Monday, August 07, 2006

Bears get a break

From today's WSJ (subscription required)

Stocks are expected to slide at the open Monday amid a spike in oil prices after BP said it will shut down a major Alaskan oil field.

BP said it will shutter its Prudhoe Bay oil field in Alaska, taking crude oil off the market in a time of tight supplies and rising demand, following the discovery of a corroded pipeline and small leak there. The shutdown by the London energy titan, disclosed last night and expected to occur over several days, will result in curtailment of an estimated 400,000 barrels a day of oil, almost half the total daily production from fields on Alaska's North Slope.

Crude-oil prices jumped $1.53 to $76.29 a barrel in early trading Monday on the news.

UPDATE: The Oracle of Omaha stops out of most of his USD short. (via Wall Street Folly)

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