Oil rises 1 percent, close to $89 a barrel (Reuters) (10-01-2011)

SINGAPORE – Oil was almost near $90 a barrel on Monday still 1 percent higher after a leak shut an Alaskan pipeline that carries 12 percent of U.S. crude output.

The Trans Alaska Pipeline was shut down on Saturday after a leak at the start of the pipeline in Prudhoe Bay, cutting that way output to 5 percent of their daily average of 630,000 barrels.

By 0658 GMT, NYMEX crude for February rose 87 cents to $88.90 a barrel, recovering some of the losses from the previous two sessions. Prices earlier rallied almost $2 to $89.98 Brent crude rose 56 cents $93.89.

Due to the 800-mile line shut down, crude prices reached a high of $89.98 a barrel while shipments were not affected. No immediate danger of restricted oil supply happens and oil produced during the shutdown will be stored at Prudhoe Bay until the pipeline reopens.

As a Reuters technical analyst said, oil still looked weaker and will end the current rebound and fall back to Friday's low at $87.25 as a downward wave "C" has not been completed.

U.S. non-farm payrolls rose just 103,000 against forecasts of 175,000 unsettled the market before the weekend while the jobless rate fell to 9.4 percent from 9.8 percent in November, its lowest in more than 1- years.

NYMEX oil futures prices fell from $91.49 a barrel on December 28 to $89.38 a barrel on January 4.

Source: Reuters