* Energy companies restoring operations shut by Hurricane Ike
* Stocks up after central banks act to put cash into markets
* Rebel attacks disrupt Nigerian oil sector
(Updates prices)
By David Sheppard
LONDON, Sept 18 (Reuters) - Oil fell on Thursday, dragged
down by gasoline futures as U.S. refiners made progress in
restarting operations following Hurricane Ike.
U.S. crude <CLc1> fell 79 cents at $96.37 a barrel at 1644
GMT, after touching a high of $102.24 earlier. It had gained $6
on Wednesday. London Brent crude <LCOc1> traded down 45 cents to
$94.39 a barrel.
Gasoline futures dragged crude down from earlier highs as
energy companies continued work to restore operations shut by
Hurricane Ike. Five of the 16 refineries closed by Ike have
restarted. []
"(U.S) Refineries are starting to restart, the pipeline
systems are coming back up in an orderly fashion and there is
going to be an influx of cargoes, so RBOB (gasoline futures)
seems to be leading crude lower," said Jim Ritterbusch,
president at Ritterbusch and Associates in Galena, Illinois.
Prices had soared back above the psychological $100 a barrel
level early in the session as a move by global central banks to
add liquidity to money markets rallied world stocks.
[]
However, concerns over the fate of U.S. investment bank
Morgan Stanley -- a major player in energy markets -- has kept
price gains in check. []
Reports that the No. 2 U.S. investment bank, whose shares
are down 50 percent this month, could be up for sale and bought
by regional banking powerhouse Wachovia Corp <WB.N> have
unnerved markets.
Morgan Stanley withdrew from a half-hour oil trading window
- used to assess benchmark prices - after pricing agency Platts
placed it under review because of counter-party concerns over
its credit status, two industry sources said on Thursday.
[]
The Platts review does not stop Morgan Stanley trading oil,
but means that its bids and offers will not be taken into
account during the daily half-hour "window" during which Platts
assesses prices in over-the-counter oil markets.
The strife on financial markets this week had pushed crude
down 10 percent on Monday and Tuesday as investors fled oil for
safer havens, with concerns the fallout from the recent turmoil
could dent energy demand.
Investors flocked to oil and other commodities earlier this
year as a hedge against falling equities and a weak dollar,
sending crude to a peak over $147 in July before slowing demand
in consumer nations sent prices tumbling.
Some market analysts were unconvinced that oil would see the
same kind of safe haven flows during the latest round of the
credit-crunch.
"Its place as a hedge against this crisis has run its
course," said Alaron trading analyst Phil Flynn. "If there is no
money to lend to build factories or buy Chinese goods then why
in the world will we need so much oil?"
Rising tensions in Nigeria's crude rich Niger Delta region
also lent support, with militants threatening on Wednesday to
broaden their "oil war" to offshore oilfields.
The Movement for the Emancipation of the Niger Delta has cut
one-fifth of OPEC member Nigeria's oil output.
(Reporting by David Sheppard and Matthew Robinson, additional
reporting by Felicia Loo in Singapore; Editing by Anthony
Barker)
