Due to speculations that said that the Alaskan crude pipeline will close down and US has been able to make large stockpile which would allow it to make up for the loss, the oil prices went down. It shed away early gains to trade near $89 per barrel.

On Monday, the oil futures climbed by 1.4 per cent after the Trans- Alaska Pipeline System shut down because of leakage. This pipeline alone accounts for 15 per cent of all of the US crude output.

Because of the closing, many of the companies were forced to suspend their production from the North Slope area. But since the time the US West Coast refiners claimed that they are not facing any trouble what so ever.

They have also said that by the end of this week, the services are expected to resume.

The partnership operating the line plans to try to return it to service this week, according to a person familiar with the plans who declined to be identified because the information is not public.

The February contracts were trading at $89.34 a barrel which is 9 cents or 0.1 per cent higher than the previous close. But if one compares it to past year then the rise has been by 8.4 per cent.