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UPDATE 2-U.S. oil pares losses after Seaway flows resume-trade
October 7, 2013 / 2:57 PM / 4 years ago

UPDATE 2-U.S. oil pares losses after Seaway flows resume-trade

(Adds details on Seaway pipeline flow resuming.)

By Jeanine Prezioso

NEW YORK, Oct 7 (Reuters) - U.S. oil futures prices pared losses on Monday after a report that the Seaway oil pipeline had resumed shipping after a brief shutdown, trade sources said, citing a report from industry intelligence firm Genscape.

Seaway pipeline flows resumed close to 178,000 barrels per day and were expected to continue ramping up, Genscape reported. Genscape monitors detected decreased power consumption on the line earlier on Monday morning and said Seaway had shut from an estimated 295,000 bpd, the firm said.

Oil futures were last trading 60 cents per barrel lower at $103.24 at 11:01 a.m. EDT (1501 GMT), recouping some losses after trading nearly $2 per barrel lower earlier in the session.

The closely watched spread between global benchmark Brent crude oil and U.S. benchmark West Texas Intermediate CL-LCO1=R had earlier widened to $6.32 per barrel. The spread was last trading at $6.05.

Separately, traders said Genscape issued a report that said crude oil inventories at the Cushing hub rose by 220,000 barrels between Tuesday and Friday last week.

Seaway carries up to 400,000 bpd of crude from Cushing, Oklahoma, the delivery point for the U.S. oil futures contract, to Gulf Coast refineries.

Additional reporting by Robert Gibbons and Selam Gebrekidan; Editing by John Wallace and Jim Marshall

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