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Oil prices rise as closures hit supply

Oil prices - Platform in Gulf of Mexico closes
Oil prices - Platform in Gulf of Mexico closes

US oil prices rose sharply this evening as a shut production platform in the Gulf of Mexico curbed more supply on top of the shut Alaska crude pipeline still keeping more than half a million barrels per day of output offline.

Chevron shut in a platform on Eugene Island Block in the US Gulf of Mexico after an upset on the structure on Monday, according to a filing with regulators.

The Trans Alaska Pipeline System's main oil pipeline remained closed but was still expected to restart this week after a spill on Saturday forced it to shut down, according to reports.

Forecasts for below normal temperatures and above normal heating oil demand in the United States sent US heating oil futures to a 28-month high. US crude oil rose $1.70 to $90.95 a barrel, while London Brent gained $1.88 to $97.58.

The premium for Brent crude over US crude jumped as above $7 a barrel today to its widest since February 2009. Brent has traded above US crude since August last year, supported by a combination of dwindling North Sea crude supplies and disruption of oil grades priced off it.