Restart of U.S. refineries helps lift oil prices

PanARMENIAN.Net - The restart of refineries in the storm-hit northeastern United States helped lift oil prices on Thursday, Nov 1, according to The Associated Press.

Benchmark oil for December delivery rose 7 cents at late afternoon Bangkok time to $86.31 in electronic trading on the New York Mercantile Exchange. The contract rose 56 cents to finish at $86.24 per barrel in New York.

Nine oil refineries that make up 8 percent of U.S. refining capacity sit in the region hit by superstorm Sandy. Nearly all were affected by the storm, and two still were not operating late Wednesday.

Crude prices were up "following reports that a number of key Northeastern refineries were back in operation after Hurricane Sandy, which was seen bolstering near term demand for crude oil," CME Group said in an energy market report.

The largest refinery by capacity, Philadelphia Energy Solutions, was in excellent condition and awaiting crude shipments. Normal operations were reported at four other refineries.

Meanwhile, The American Petroleum Institute said crude oil stocks rose by 2.1 million barrels to 371.7 million for the week ending Oct 26.

Brent crude, which is used to price international varieties of oil, fell 23 cents to $108.47 per barrel in London.