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UPDATE 3-Oil dips as pipeline outage fears ease, India weighs

05/11/2021 01:33
UPDATE 3-Oil dips as pipeline outage fears ease, India weighs

Colonial aims to substantially restore operations by end-week

COVID-19 outbreak hits India's fuel demand

OPEC monthly report due 1120 GMT

Changes dateline to London, adds shipping data, updates prices

By Shadia Nasralla

- Oil prices fell on Tuesday on fading fears of a prolonged outage of the largest U.S. fuel pipeline system, while India's coronavirus crisis showed scant sign of easing. nL1N2MY0ES

Brent crude LCOc1 futures dropped 30 cents, or 0.4%, to $68.02 a barrel by 1000 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 32 cents, or 0.4%, to $64.60 a barrel.

Oil was retreating amid weak sentiment as Asian stocks suffered a tech-led selloff and the market shrugged off concerns about a temporary shutdown of the Colonial Pipeline, DailyFX strategist Margaret Yang said. nL1N2MY08X

Colonial Pipeline, which transports more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel, said on Monday it was working to restore much of its operations by the end of the week.[nL1N2MX1MX]nL4N2MW0BW

Traders booked at least four tankers to store refined oil products off the U.S. Gulf Coast refining hub following a cyber attacks that knocked out the pipeline, shipping data showed on Tuesday. nL1N2MY0M5

The U.S. gasoline futures contract RBc1 and U.S. heating oil futures HOc1, which rose after the outage, have retreated to pre-Friday levels on the prospect of the restart.

Meanwhile, sentiment is weighed down by the rapid spread of coronavirus infections in India, which has increased calls to lock down the world's second-most populous country and the third largest oil importer and consumer.nL4N2MY0OBnL1N2MX05R

On the bullish side for crude, analysts are expecting data to show U.S. inventories fell by about 2.3 million barrels in the week to May 7, following an 8 million-barrel drop the previous week, according to a Reuters poll. nL4N2MX3U4

Gasoline stocks are expected to have fallen by about 400,000 barrels, analysts estimated ahead of reports from the American Petroleum Institute industry group on Tuesday and the U.S. Energy Information Administration on Wednesday.

OPEC is also expected to publish its monthly oil market report at 1120 GMT.

Indian oil refiners cut output, imports as pandemic hits demandnL1N2MY0ES

U.S. government working to aid top fuel pipeline operator after cyberattacknL1N2MW05X

EXPLAINER-Will Colonial fuel pipeline shutdown mean U.S. pump prices rise? nL4N2MW0BW

(Additional reporting by Shu Zhang and Sonali Paul, Editing by Gabriela Baczynska)

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