* Brent supported by potential increase in U.S. import needs
* U.S. crude also rallies, wide discount to Brent persists
* EIA says U.S. crude stocks fall; products up
(Adds U.S. inventory report, updates prices)
By Alex Lawler
LONDON, Jan 12 (Reuters) - Brent crude oil rose to $98 a
barrel on Wednesday for the first time in 27 months as
production shutdowns and growing global demand raised
expectations of tighter supplies.
Two Norwegian oilfields resumed output on Wednesday after a
a 20-hour interruption, caused by a gas leak, had supported oil
prices. []. The Trans Alaska Pipeline, which ships
about 12 percent of U.S. crude output, was shut on Saturday
because of a leak, although shipments restarted at a reduced
rate.
Brent <LCOc1>, the benchmark for oil trade in Europe, the
Middle East and Africa, rose as much as 96 cents to $98.57, the
highest in 27 months, and was up 91 cents at $98.52 at 1601 GMT.
U.S. crude <CLc1> added $1.03 to $92.14.
"Worsening sentiment is the only thing that could derail the
price rally at the moment," said Carsten Fritsch, analyst at
Commerzbank, who said $100 oil looked imminent. "It seems only a
matter of time if sentiment remains positive and more
disruptions on the supply side come in."
U.S. crude traded more than $7 below Brent on Tuesday, the
widest spread since February 2009, because of high inventories
at the Cushing, Oklahoma delivery point <CL-LCO1=R> and tighter
supply of Brent-related crudes.
Oil also gained support from a weekly U.S. government supply
report which showed a larger than expected, 2.15 million-barrel
decline in crude stocks last week.
The Energy Information Administration's report released at
1530 GMT also said gasoline and distillates stocks rose, a
higher increase than analysts had expected. []
RISING DEMAND, OPEC RESTRAINT
Trans Alaska Pipeline operator Alyeska on Tuesday received
government permission to restart the line. Shipments resumed
late on Tuesday at a reduced rate. []
An reduction lasting more than a week may force oil
refineries on the U.S. West Coast to look for alternatives in
Russia and the Middle East, traders and analysts said.
Oil also gained support from forecasts for higher heating
demand this week as the U.S. Northeast, the world's biggest
heating oil market, prepared for another snowstorm. []
[]
Global oil demand this year is forecast to reach a record
88.6 million barrels per day (bpd), following much faster demand
growth last year than most analysts expected. []
At the same time, the Organization of the Petroleum
Exporting Countries is sticking to a production-restraining
output policy it agreed to more than two years ago, when
recession hit demand and prices.
Other analysts said Brent could reach $100 soon given that
it has climbed above price levels acting as technical resistance
that could have stood in the way of the rally.
"The $100 magnet on Brent is within daily reach," said
Olivier Jakob of Petromatrix. "The only real technical
resistance left on Brent is $100."
(Additional reporting by Alejandro Barbajosa; editing by
Anthony Barker)
