Oil Price Rises on Alaska Pipeline Close

Crude prices gained over 1 percent on Monday as the shutdown of the Trans Alaska Pipeline System caused supply concerns.

On Saturday, Alyeska Pipeline Co., which operates the 800-mile pipeline network, shut the pipeline after workers discovered a leak. The closure forced BP, Exxon and others to shut down nearly all of their oil production on Alaska's North Slope, an area that produces 630,000 barrels a day, about 9 percent of total domestic U.S. output, and provides crude oil to U.S. West Coast refineries.

Crude futures got a further boost from heating oil futures, which rose nearly 3 percent as the government forecast higher heating oil demand this week due to colder weather.

Light, sweet crude for February delivery rose 1.22 dollars to 89.25 dollars a barrel on the New York Mercantile Exchange.

In London, Brent crude rose 2.43 dollars to settle at 95.70 dollars a barrel on the ICE Futures exchange.