NEW YORK - Oil prices rose yesterday as refinery outages in the United States stoked supply concerns again as the end of the summer driving season neared.
US crude CLc1 settled up 88c at US$71.97 a barrel, after jumping US$1.26 on Friday.
London Brent LCOc1 rose 33c to
US$70.95 a barrel, with trading volumes lighter than normal due to a public holiday in Britain.
News of fresh US refinery problems and forecasts of falling inventories supported petrol and oil futures.
Oil markets have been on edge over US refinery performance during the northern summer, as a string of unplanned outages helped drain stockpiles during the peak driving demand season.
Prices edged higher after traders said Citgo cut rates at its 156,000-barrel-per-day refinery in Corpus Christi, Texas, after a problem with the alkylation unit.
Markets are also awaiting news on when Chevron will restart a crude unit at its giant Pascagoula, Mississippi, refinery, one of the 10 biggest in the United States, following a fire.
The company expects to cancel or reroute some crude shipments due to the shutdown.
Oil prices have fallen since reaching a record peak of US$78.77 on August 1 due to concerns about a global credit crunch and wider economic problems.
Prices eased earlier yesterday as traders looked to the end of US summer driving demand.
Fresh US economic data showing the housing downturn had intensified also pressured prices in early trade.
Opec Secretary-General Abdullah al-Badri said on Monday he felt the international oil market was well-supplied, suggesting Opec would keep supplies at current levels when the group next meets on September 11.
- Reuters
