Oil rises from 4-month low as refineries restart
Oil rose from the lowest level in almost four months as refineries restored production after Hurricane Sandy tightened fuel supplies.
Prices snapped a threeweek loss as four of the six Northeast refineries that were forced to close because of Sandy resumed output. Gains accelerated in the final 15 minutes of floor trading as gasoline jumped and Brent oil in London climbed on unprecedented delays in North Sea Forties shipments.
"Refineries are kicking back up and it's a little supportive for oil in the short term," said Kyle Cooper, director of commodities research at IAF Advisors in Houston. "Market's sold off quite a bit and you probably have value investors coming in."
West Texas Intermediate oil for December delivery rose 79 cents, or 0.9 percent, to settle at $85.65 a barrel on the New York Mercantile Exchange. The contract ended at $84.86 a barrel on Nov. 2, the lowest settlement since July 10. Prices have dropped 13 percent this year. Brent oil for December settlement increased $2.05, or 1.9 percent, to end the session at $107.73 a barrel on the ICE Futures Europe exchange.
Three refineries in New Jersey, Delaware and Pennsylvania with a total capacity of 527,200 barrels a day returned to normal operations last week and Philadelphia Energy Solutions' 335,000-barrels-a-day plant in Philadelphia was producing at reduced rates as of today, according to the Energy Department.
Hess Corp. (HES)'s Port Reading and Phillips 66's Bayway refineries in New Jersey remained shut.