Oil supplies to U.S. West Coast threatened

The U.S. West Coast could run short of gasoline due to oil supplies facing a series of global and domestic threats, analysts warned on Monday.

The West Coast, which has the highest fuel prices in the nation, may have to find alternative supplies as a result of the situation, analysts said.

They listed the threats as the shutting down by BP of Alaska's Prudhoe Bay oil field and the possible suspension of oil exports by Iran, whose nuclear program has caused much concern for the oil market.

London-based BP, the world's second-largest publicly traded oil company, announced earlier that it would shut Prudhoe Bay, the largest oil field in the U.S., as result of pipeline corrosion and leaks.

Production worth around 400,000 barrels a day is being idled because of the maintenance problems, BP spokesman Ronnie Chappell said.

The BP gets 40 percent of its sales from the U.S., with Alaska providing around 10 percent of BP's worldwide oil production.

The announcement prompted crude oil to surge by more than 2 U.S. dollars a barrel and U.S. stocks to slide.

The news has tightened the already volatile oil market, said analysts.

A heatwave or storm could push prices above 80 dollars a barrel in a heartbeat, said one analyst.

U.S. gasoline usage peaks between late May and early September. The oil price has jumped by 26 percent this year.

Crude oil for September delivery rose by 2.22 dollars, or 3 percent, to close at 76.98 dollars a barrel on the New York Mercantile Exchange, the second-highest since trading began in 1984. Futures are up 24 percent from a year ago.

Source: Xinhua