UPDATE 8-Oil hits 1-mth high on U.S. pipeline, Chinese growth

                                
 * Igor churns westward, could strengthen even further
                                
 * No date for restarting Enbridge pipeline
                                
 
 (Updates prices, adds U.S. equity markets open)
                                
 By Marie-Louise Gumuchian
                                
 LONDON, Sept 13 (Reuters) - Oil rose to a one-month high on
Monday, spurred by an extended shutdown of a major Canada-U.S.
crude pipeline and strong Chinese demand growth and industrial
output.
                                
 U.S. crude for October <CLc1> climbed to $78.04 a barrel,
the highest price since Aug. 11, and was up $1.40 at $77.85 by
1411 GMT. Brent <LCOc1> rose $1.12 to $79.28.
                                
 Enbridge's <ENB.TO> Line 6A pipeline carrying Canadian crude
oil to U.S. refineries and the crucial Cushing, Oklahoma oil
hub, remained shut as workers continued digging around a leaky
section of pipe in Romeoville, Illinois. [ID:nN13175646]
                                
 No date has been set for restarting the pipeline.
                                
 "The leakage in this major pipeline will be supporting (U.S.
crude) prices, and Enbridge has not given any indication of the
time estimate for how long it will take to repair it," Eugen
Weinberg, an analyst at Commerzbank, said.
                                
 Data from the world's second-largest oil user also boosted
prices. Reflecting accelerating industrial activity, China's
implied oil demand rose by 7.4 percent in August from a year
earlier. [ID:nTOE66D05H]
                                
 "The Chinese data was overwhelmingly positive," said Ben
Westmore, a commodities analyst at National Australia Bank.
                                
 "China is in a soft landing after all the stimulus, and
 emerging economies are growing quite strongly. In terms of oil
use, that portends strong demand in the coming months."
                                
 
                                
 PIPELINE
                                
 The suspension of shipments has the potential to reduce
flows to Cushing by around 300,000 barrels per day, according to
JP Morgan oil analysts, taking into account the potential to
pump crude via alternative routes.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 For a graphic on Enbridge's pipeline configuration:
                                
 http://link.reuters.com/qyz52p
                                
 For a factbox on the history of Enbridge's pipeline spills
in the U.S. [ID:nN10254087]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 Six weeks ago, Enbridge was forced to shut another smaller
part of its Lakehead system, which the U.S. government has not
yet allowed to resume operations following heightened scrutiny
because of BP's <BP.L> Gulf of Mexico spill.
                                
 Brent posted a premium of more than $3.50 a barrel to U.S.
crude last week, its highest since mid-May, but that had shrunk
to around $1.40 on Monday.
                                
 Higher equity markets also helped oil prices. The oil market
has spent much of the year in lockstep with equities and
negatively correlated to the U.S. dollar. 
                                
 On Monday, world stocks measured by MSCI All-Country World
Index <.MIWD00000PUS> rose 1.35 percent. 
                                
 U.S. stocks opened higher after upbeat Chinese factory data
and a deal on global bank rules that gives lenders more time
before they must raise additional capital. The dollar was down
0.74 percent against a basket of currencies. <.DXY>
                                
 Hurricane Igor churned westward in the Atlantic Ocean as a
dangerous Category Four storm and could strengthen even further,
forecasters said.  [ID:nN13163767]
 (Additional reporting by Alejandro Barbajosa in Singapore,
editing by Lin Noueihed )