Crude rises on Wall Street rally, gasoline spike amid pipeline outage
By Barani Krishnan
NEW YORK (Reuters) - Oil prices rose about 1 percent or more on Thursday after tracking a rally in gasoline futures sparked by a delayed restart of the main gasoline line at Colonial Pipeline, the No. 1 carrier for the motor fuel in the United States.
A run up in Wall Street shares also boosted oil prices as weak U.S. economic data dampened the likelihood of a Federal Reserve rate hike this month. [.N] [FRX/]
Brent crude futures LCOc1 settled up 74 cents, or 1.6 percent, at $46.59 a barrel, after a session high at $47.
U.S. West Texas Intermediate (WTI) crude futures CLc1 rose 33 cents, or 0.8 percent, to close at $43.91.
Colonial's main gasoline and distillate line was shut on Friday after a 6,000-barrel leak in Alabama. It was to have restarted this weekend, but the company said that will now be delayed till next week.
Gasoline futures were also supported by news BP Plc (BP.L: Quote) will conduct repairs this weekend on the large crude distillation unit at its 413,500 barrel per day Whiting, Indiana refinery, cutting production by at least 50 percent.
Over the previous two sessions, oil prices fell 6 percent, pressured by data showing large weekly builds in U.S. petroleum products, and forecasts by the world's energy watchdog and OPEC that signaled the global crude glut could persist into 2017. [IEA/M] [OPEC/M]
On Thursday, traders and investors bought crude to cover short positions as gasoline rallied about 5 percent or more RBc1. U.S. equities .SPX rose more than 1 percent. Continued...