WTI tops $60 per barrel

The price of some crude oil managed to surpass the $60 per barrel level on Wednesday afternoon after worries of supply shortages arose when two shutdowns were reported. A refined products pipeline carrying diesel fuel was closed in Indiana due to a leak, with no estimate of when it will be repaired and reopened. In addition, BP (LSE: BP; NYSE: BP: TYO: 5051) reported late Tuesday that it had to shut down its Northstar oil field in Alaska after a small leak was discovered. The BP shutdown cut off 40,000 barrels per day with no word on when production will resume.

In addition, The International Atomic Energy Agency reported that Iran continued refining uranium past a UN deadline, a move which could activate harsher UN sanctions than are already in place. This development came a day after Iran’s president said that while it was no problem for Iran to suspend its nuclear enrichment program, that fairness demanded a similar gesture from Western nations before talks could take place.

April contracts for Brent crude added $1.44 to $59.42 per barrel in London, while West Texas Intermediate for April delivery was $1.27 higher to trade at $60.12 per barrel in the afternoon on the New York Mercantile Exchange. Gasoline prices rose 5 cents to $1.70 per gallon, while heating oil gained almost 4 cents to $1.5848 per gallon. Natural gas added 14 cents to $7.725 per 1,000 cubic feet.