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BP shuts 100,000 barrels of output

BP said Tuesday that it will shut down 100,000 barrels a day of its Alaskan oil production for a “few days” after discovering a water pipeline leak Monday at Prudhoe Bay.
/ Source: The Associated Press

BP said Tuesday that it will shut down 100,000 barrels a day of its Alaskan oil production for a “few days” after discovering a water pipeline leak Monday at Prudhoe Bay.

Analysts said the temporary loss of output should not have a dramatic impact on world oil markets, but with crude futures trading near $66 a barrel, any snag in the industry tends to make energy traders jittery.

Light sweet crude for June delivery fell 32 cents to $65.95 a barrel in electronic trading on the New York Mercantile Exchange.

London-based BP said the leak was discovered in a 12-inch pipe that collects water separated from the oil and gas it produces.

“We’re putting together inspection and repair plans to return the facility to normal operations,” BP spokesman Neil Chapman in Houston said.