* Substantial oil output from the Gulf of Mexico still shut
* World stocks rise after central banks act to put cash into
money markets
* Rebel attacks disrupt Nigerian oil sector
(Updates throughout, changes dateline PVS Singapore)
By David Sheppard
LONDON, Sept 18 (Reuters) - Oil rose to near $99 on Thursday
as global markets rebounded and the U.S. energy sector worked to
restart operations shut by Hurricane Ike.
Supply disruptions caused by rebel attacks in OPEC exporter
Nigeria also supported prices, after turmoil in the financial
markets sent prices tumbling earlier in the week.
U.S. crude <CLc1> traded up $1.83 to $98.99 a barrel by 1038
GMT, adding to a $6 gain on Wednesday, the largest one-day
percentage gain in three months. London Brent crude <LCOc1> rose
$1.48 to $96.32 a barrel.
Stocks gained after major central banks poured billions of
dollars into the money markets to ease liquidity strain, with
further support for crude coming from the weaker dollar.
"Most of the big moves at the moment are financial market
related rather than related to the fundamentals. A bit of
weakness in the dollar seems to have pushed prices higher right
now," said Tony Machacek, broker at Bache Commodities.
Investors flocked into oil and other commodities earlier
this year as a hedge against inflation and the weak dollar,
helping to push crude to a record high over $147 a barrel in
July. Financial market worries pushed many investors into safer
havens on Monday and Tuesday, traders said.
Hurricane Ike toppled several platforms in the Gulf of
Mexico and 12 refineries along the Gulf Coast remain shut
following the storm.
Nearly 96 percent of oil production in the Gulf -- home to a
quarter of U.S. output -- was still offline on Tuesday while a
U.S. government report released on Wednesday showed a sharp drop
in crude stocks in the world's top consumer.[]
Rising tensions in Nigeria's crude rich Niger Delta region
have heightened supply concerns, with militants threatening on
Wednesday to broaden their "oil war" to offshore oilfields.
[]
The Movement for the Emancipation of the Niger Delta has cut
a fifth of OPEC member Nigeria's oil output.
Analysts said trading could stay volatile as movements on
broader financial markets could override supply and demand
fundamentals.
"In the current financial turmoil, trading commodities with
any theme or rationale is still exposed to extraordinary
exogenous factors which can bring waves of buying or selling,
unrelated to the core fundamentals of each commodity," said
Petromatrix analyst Olivier Jakob.
Overnight, No. 2 U.S. investment bank Morgan Stanley <MS.N>
and top U.S. savings and loan Washington Mutual <WM.N> were
reportedly up for sale, while Britain's Lloyds TSB <LLOY.L>
agreed to buy rival HBOS <HBOS.L>. []
Gold prices have rallied by almost 12 percent over the
last-two days, as investors look for a safe-haven away from
rattled equity and bond markets.
(Reporting by David Sheppard; additional reporting by Felicia
Loo in Singapore; Editing by Anthony Barker)
