June 3, 2010 8:39 PM

As BP severs riser, false report sends oil prices up

On a day when BP took a successful step in its most recent effort to cap a runaway Gulf of Mexico oil well, an apparently false rumor about new restrictions on offshore drilling in shallow water drove the price of oil up $1.75 to more than $74 a barrel. The false report that the Obama administration would extend its six-month moratorium on deepwater drilling to water less than 500 feet deep was carried by a variety of news outlets, including the Washington Post, the Associated Press and the Wall Street Journal.

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