* U.S. crude inventories drop for 6th straight week
* Alaskan pipeline resumes partial oil flows
* Commodity gains stir economic concerns
* Coming up: US weekly jobless claims, 8:30 a.m EST Thurs
(Recasts, updates prices, market activity to settlement)
By Gene Ramos
NEW YORK, Jan 12 (Reuters) - Oil rose on Wednesday after
production shutdowns, falling U.S. inventories and growing
demand sent Brent crude toward $100 a barrel for the first time
since 2008.
U.S. government data showing U.S. crude stocks falling for
a sixth straight week helped extend this week's gains.Disruptions from Alaska and Norway stoked supply concerns and
cold weather in the U.S. Northeast fed demand for heating oil.
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Oil's climb back toward $100 a barrel -- last touched in
October 2008 -- has raised concerns about the impact of higher
fuel costs on the tenuous economic recovery.
"Back in 2008, (U.S.) crude oil only traded above $100 a
barrel for about six months before the world economy collapsed
into the worst crisis since the 1930s," warned Sabine Schels,
commodity strategist for Merrill Lynch.
Crude's rise on Wednesday was part of wider gains across
commodities, with metals rising and soybean and corn futures
touching 30-month highs that further stocked economic worries.
London Brent oil <LCOc1>, benchmark for European, Middle
East, and African crudes, rose 51 cents to settle at $98.12 a
barrel, after touching $98.85 a barrel earlier, the highest
level since Oct. 1, 2008.
Brent held its strong premium to U.S. crude <CLc1>, which
settled up 75 cents at a 27-month high of $91.86 a barrel.
The premium widened this week after disruption of two North
Sea oil fields and the the shutdown of the Alaskan crude
pipeline, which had raised concern Pacific Basin refiners would
have to find alternatives from Russia and the Middle East.
Supply concerns eased after the operator of the Trans
Alaska Pipeline System said throughput on the line had reached
400,000 barrels per day (bpd), about two-thirds of normal
throughput, as part of a provisional restart plan after it was
shut by a leak on Saturday. []
In addition, two Norwegian offshore oil fields restarted
production after a disruption boosted Brent earlier in the
week. []
Further support for Brent's premium to U.S. crude has come
from high inventory levels at the Cushing, Oklahoma delivery
point for the U.S. oil futures contract.
U.S. INVENTORY FALL
Overall U.S. crude stocks, especially along the Gulf Coast,
have been on the decline.
Data from the U.S. Energy Information Adminitration
released on Wednesday showing oil inventories fell for the
sixth straight week, slashing supplies by nearly 27 million
barrels, the biggest six-week decline since January 2008.
Gasoline and distillate stockpiles rose, while heating oil
inventories fell as cold weather boosted demand in the giant
U.S. Northeast market and pushed heating oil futures to
27-month highs.
Crude oil prices rose as the dollar fell 1.0 percent
against a basket of currencies, supporting lifting
dollar-priced commodities.
The dollar's decline came as the euro rallied on rising
risk appetite after a healthy debt auction in Portugal,
somewhat easing euro-zone fiscal worries. [] <.DXY>
U.S. stocks also rose after the auction, and agricultural
stocks rallied after a U.S. government report that stockpiles
of corn and soybeans would be drawn down to surprisingly low
levels.
The news boosted food prices, adding to the worries about
the impact of higher commodities prices on consumers.
"It's a little disconcerting and while I don't think it
will immediately slow the world economy it will have an effect
on consumers," independent investor Dennis Gartman said of
oil's rush to $100 a barrel.
(Additional reporting by Robert Gibbons in New York, Alex
Lawler in London; Alejandro Barbajosa in Singapore; editing by
Matthew Robinson, Marguerita Choy and David Gregorio)
