* No date for restarting Enbridge pipeline
* Global equities rise on China data, dollar falls
(Updates prices, adds detail, analyst quote, changes dateline
from LONDON)
By Edward McAllister
NEW YORK, Sept 13 (Reuters) - Oil prices 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 90 cents to $77.35 a
barrel by 12:03 p.m. EDT (1603 GMT), after earlier rising to
$78.04, the highest price since Aug. 11. In London, Brent crude
<LCOc1> rose $1 to $79.16.
Enbridge Inc's <ENB.TO> Line 6A pipeline carrying Canadian
crude oil to U.S. refineries and a crucial oil hub in Cushing,
Oklahoma, remained shut as workers continued digging around a
leaky section of pipe in Romeoville, Illinois, near Chicago.
[]
No date has been set for restarting that pipeline or
another, smaller Enbridge line that was shut six weeks ago.
"The petroleum markets were trading higher in early going
Monday, with support coming from a stronger equity market, a
weaker U.S. dollar, and ongoing concerns regarding the Enbridge
pipeline outage," said Tim Evans, energy analyst at Citi
Futures Perspective in New York.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on Enbridge's pipeline configuration:
http://link.reuters.com/qyz52p
Reuters Insider interview with Genscape VP
http://link.reuters.com/zur72p
FACTBOX Refineries affected by line outage []
FACTBOX Oil pipelines feeding the Midwest []
FACTBOX History of Enbridge pipeline spills []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Data from China, 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. []
"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."
A weak dollar and stronger equity markets also helped
bolster crude prices on Monday. The oil market has spent much
of the year in lockstep with equities and negatively correlated
to the U.S. dollar.
U.S. stocks opened higher after the upbeat Chinese factory
data and a deal on global bank rules that gives lenders more
time before they must raise additional capital. The dollar
headed for its biggest daily slide against the euro in two
months as the Chinese data boosted currencies of countries like
Australia that are big sellers to China.
News that Saudi Arabia's Saudi Aramco may respond to
economic recovery by increasing output of crude helped knock
crude off its earlier highs. []
"The news that Aramco would be ready to increase production
as they say demand has bottomed had a calming effect on crude
futures prices," said Phil Flynn, an analyst at PFGBest
Research in Chicago.
PIPELINE
The suspension of shipments on Enbridge's 6A Line had 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 to
the delivery point for U.S. crude futures.
Six weeks ago, Enbridge was forced to shut another
pipeline, a 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 $2 on Monday.
Hurricane Igor churned westward in the Atlantic Ocean as a
dangerous Category Four storm and could strengthen even
further, forecasters said, though the storm posed no immediate
threat to energy interests. []
(Additional reporting by Gene Ramos in New York, Marie-Louise
Gumuchian in London, Alejandro Barbajosa in Singapore; Editing
by Walter Bagley)
