Oil keeps above $89; Alaska pipeline stays shut (Reuters) (11-01-2011)

SINGAPORE – Oil remained above $89 on Tuesday on hopes that the Trans Alaska Pipeline would resume flows equivalent to 12 percent of U.S. crude output within a few days.

U.S. crude for February gained 16 cents to $89.41 a barrel by 2:36 a.m. EST after trading as high as $89.67 at the start of the trading session. Front-month ICE Brent crude shed 12 cents to $95.58.

The pipeline is about to reopen later this week after halting shipments on Saturday because of a leak that forced producers in Alaska's Prudhoe Bay region to cut output by about 600,000 barrels to just 5 percent of normal levels.

U.S. crude oil inventories are estimated to have risen 400,000 barrels last week as imports rebounded. Distillate stocks, like heating oil and diesel, have possibly increased 1.3 million barrels for their third straight weekly gain, while gasoline stocks probably up 2.8 million barrels.

China's crude oil imports rose 17.5 percent to a record 4.79 million bpd in 2010 from a year ago, but the growth may slow this year as fewer new refineries come on stream.

U.S. crude prices reached a 27-month high of $92.58 last week expecting a boosted energy demand from both emerging markets and industrialized nations.

Source: Reuters