Crude oil rose, ending three days of declines, after an explosion cut Canadian oil shipments through Enbridge Inc. pipelines that supply U.S. refiners.
Three of four pipelines closed after Wednesday’s blast have been re-opened, Enbridge said. Futures pared earlier gains after the company announced plans to resume full operation in two or three days. The pipelines transport oil to U.S. refiners.
“Any fears that this is going to lead to a major disruption have been alleviated,” said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago.
Crude oil for January delivery rose 39 cents, or 0.4 percent, to settle at $91.01 a barrel at 2:45 p.m. on the New York Mercantile Exchange. Oil earlier gained more than 5 percent to $95.17 a barrel. Futures are up 46 percent from a year ago.
Wednesday’s blast killed two workers and curtailed Canadian imports to the U.S. that average 1.5 million barrels a day.
Enbridge’s pipelines supply refineries including BP PLC’s plant in Whiting, Ind., and plants along the Gulf Coast. The U.S. imported 10.3 million barrels a day last week.
The Energy Department said it’s “reaching out” to Midwestern refiners and that oil from the Strategic Petroleum Reserve “is available to alleviate a severe supply disruption,” spokeswoman Megan Barnett said in a telephone interview. She declined to say whether the department has received any requests to tap the reserve.
