* Brent supported by potential rise in U.S. import needs
* U.S. crude stockpiles fall; products increase-EIA
* U.S. crude rallies, wide discount to Brent persists
(Updates throughout, changes byline from previous LONDON)
By Gene Ramos
NEW YORK, Jan 12 (Reuters) - Brent crude prices rose on
Wednesday to near $99 a barrel after production shutdowns,
falling U.S. inventories and growing demand sent oil toward
triple digits for the first time since 2008.
Crude gained after a U.S. government report showed oil
inventories fell for the sixth straight week, slashing supplies
by nearly 27 million barrels in that stretch, the biggest
six-week decline since January 2008. []
The drawdown added to global supply concerns stoked this
week by the temporary shutdown of production in the North Sea
and Alaska, while cold weather in the U.S. Northeast also
supported crude.
Oil prices have been steadily climbing since the third
quarter of 2010 on signs the improving economy was spurring
demand fuel growth, and that it would rise further this year.
While oil's climb toward $100 a barrel raised concerns
about the impact of rising fuel costs on the economic recovery,
top oil exporter Saudi Arabia -- which has said it prefers a
$70-80 a barrel price range -- kept supplies to customers
steady. []
Brent crude <LCOc1>, the benchmark for Europe, the Middle
East, and Africa, rose $1.19 to $98.80 a barrel by 1:25 p.m.
EST (1825 GMT), after touching a 27-month high of $98.85
earlier.
U.S. crude <CLc1> rose $1.02 to $92.13, after climbing to
$92.39, near the $92.58 the Jan. 3 peak that is the highest
since October 2008.
Bullish sentiment has been supported by a U.S. Energy
Department forecast issued on Tuesday pointing to global oil
demand growth accelerating with prices averaging at $99 a
barrel by next year. []
Global oil demand this year is forecast to reach a record
88.6 million barrels per day, following much faster demand
growth last year than most analysts had expected. []
"Worsening sentiment is the only thing that could derail
the price rally at the moment," said Carsten Fritsch, analyst
at Commerzbank, who said $100 oil looked imminent.
"It seems only a matter of time if sentiment remains
positive and more disruptions on the supply side come in."
Supply concerns eased somewhat after the restart of
production at two North Sea oil fields, which had supported
prices earlier in the week. []
In addition, the operator of the Trans Alaska Pipeline
System said throughput on the line had reached 400,000 barrels
per day (bpd), about two-thirds of normal throughput, as part
of a provisional restart plan after it was shut by a leak on
Saturday. []
BRENT-WTI SPREAD REMAINS WIDE
Concerns had been raised an extended loss of Alaskan oil
could force oil refineries on the U.S. West Coast to look for
alternatives in Russia and the Middle East, helping to extend
Brent crude's premium to U.S. oil.
Brent's spread against the U.S. benchmark hit $6.82 a
barrel on Wednesday, after shooting up to $7.02 on Tuesday, the
widest spread since February 2009.
The spread had continued to widen since the start of the
year because of high inventories at the key U.S. crude delivery
hub at Cushing, Oklahoma, and tighter supply of Brent-related
crudes.
U.S. crude oil stockpiles fell 2.15 million barrels last
week, a million barrels more than expected, data from the U.S.
Energy Information Administration showed. Distillate and
gasoline supplies rose much more than forecasts.
Despite the build, U.S. heating oil firmed near fresh
27-month highs, lifted by forecasts of higher demand in the
U.S. Northeast, the world's biggest heating oil market, as
another fierce snowstorm pummeled the region overnight.
(Additional reporting by Robert Gibbons in New York, Alex
Lawler in London; Alejandro Barbajosa in Singapore; editing by
Matthew Robinson and Marguerita Choy)
