* Officials plan for Alaska pipeline to restart this week
* Technicals show U.S. crude to rebound towards $91
[]
* Coming Up: API U.S. weekly oil inventory report; 2130 GMT
(Updates prices)
By Alejandro Barbajosa
SINGAPORE, Jan 11 (Reuters) - Oil was steady above $89 on
Tuesday, paring early gains on expectations 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 <CLc1> gained 16 cents to $89.41 a
barrel by 0736 GMT after trading as high as $89.67 at the
start of the trading session. Front-month ICE Brent crude
<LCOc1> shed 12 cents to $95.58.
The pipeline is planned to reopen later this week,
officials said on Monday, 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. []
"The near-term outlook for prices will depend on whether
the pipeline can be restored by the end of the week," said
Credit Suisse analysts including Stefan Graber.
"We think oil prices will ease once the pipeline in Alaska
is repaired and restarted."
A bypass line at the affected area would allow the duct's
operator, Alyeska Pipeline Service Co, to restart the system.
Past shutdowns of the 800-mile (1,280 kilometre) line have
generally been short-lived, and tanker shipments from Alaska's
Valdez port have not yet been hit.
U.S. crude oil inventories probably rose by 400,000
barrels last week as imports rebounded, in what would be the
first gain in six weeks, according to a preliminary Reuters
poll before the release of weekly inventory reports.
[]
In the previous five weeks, crude inventories had tumbled
more than 24 million barrels, the biggest five-week drop since
June 2008, as refiners, in their usual year-end practice, used
more of their stored supplies and tried to hold down imports
to lower their taxes for 2010.
Distillate stocks, which include heating oil and diesel,
may have increased 1.3 million barrels for their third
straight weekly gain, while gasoline stocks probably rose 2.8
million barrels, the survey showed.
Industry group the American Petroleum Institute will
publish inventory statistics on Tuesday at 2130 GMT, while the
U.S. Energy Information Administration will follow with
government figures on Wednesday at 1530 GMT.
China's crude oil imports rose 17.5 percent to a record
4.79 million bpd in 2010 from a year ago, official data showed
on Monday, but the growth may slow this year as fewer new
refineries come onstream. []
In other markets, the euro languished near a four-month
low on Tuesday after a brief rally triggered by a Japanese
plan to buy euro bonds, while Asian stocks drifted, fearful of
Portugal becoming the next casualty of the euro zone's debt
crisis.
U.S. crude prices reached a 27-month high of $92.58 last
week on expectations that a sustained economic recovery would
boost energy demand from both emerging markets and
industrialised nations.
(Editing by Ed Lane)
