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LONDON (Thomson Financial) - Oil eased as news of a pipeline reopening spurred some hope of abating tight gasoline supplies in the US.
Crude oil futures rose sharply on Friday on continued concerns that US refineries are not producing enough gasoline to meet peak summer driving demand.
The restart on Sunday of a pipeline operated by Colonial Pipeline may have helped ease some of those supply worries, traders said.
On Friday, the company had said gasoline pipeline operations would be delayed, partly contributing to that day's big rise.
"Now that the Colonial Pipeline has restarted to supply products from the US Gulf Coast to the importing US East Coast, the crude oil futures market is dipping a bit," said Victor Shum, energy analyst with Purvin & Gertz in Singapore.
Elsewhere, traders also kept an eye on key crude producer Nigeria. A temporary truce was offered by main militant group Mend over the weekend, which vowed not to attack oil fields until at least the end of the month to allow time to engage in talks with the government.
"For the moment at least peace prevails and oil shall soon be moving from Nigeria in force," said Dennis Gartman, editor of The Gartman Letter -- a daily trading note. He added: "This cannot be bullish of crude oil generally."
Unrest in Nigeria, including a string of kidnappings of foreigners and pipeline attacks, have reduced oil output about 25 pct over the past year.
Fears of further refinery problems in the US and lingering worries of crude oil supply interruptions from Nigeria, despite a temporary truce, helped prices hold onto most of last week's gains, said Base Commodities trader, Christopher Bellew.
At 10.32 am in London, benchmark Brent crude contracts for July delivery were down 17 cents at 68.90 usd per barrel, while New York crude contracts for July delivery were down 47 cents at 64.61 usd per barrel.
Refinery troubles in the US have squeezed the gasoline market for months. Fears are heightening that any more problems could tighten the balance further, with the world's top consumer now into its peak-demand driving season.
Brent crude oil struck a nine month high of 71.80 usd on May 24, propelled by a combination of volatile geopolitical tensions in Nigeria and Iran, the world's fourth largest producer and as traders fretted about low levels of gas inventories ahead of the peak-demand driving season which kicked off late last month.
Gasoline stocks in the US are still "well below the lower end of the average range," according to the US Department of Energy.
(Updates prices, adds quotes, details)
LONDON (Thomson Financial) - Oil eased as news of a pipeline reopening spurred some hope of abating tight gasoline supplies in the US.
Crude oil futures rose sharply on Friday on continued concerns that US refineries are not producing enough gasoline to meet peak summer driving demand.
The restart on Sunday of a pipeline operated by Colonial Pipeline may have helped ease some of those supply worries, traders said.
On Friday, the company had said gasoline pipeline operations would be delayed, partly contributing to that day's big rise.
"Now that the Colonial Pipeline has restarted to supply products from the US Gulf Coast to the importing US East Coast, the crude oil futures market is dipping a bit," said Victor Shum, energy analyst with Purvin & Gertz in Singapore.
Elsewhere, traders also kept an eye on key crude producer Nigeria. A temporary truce was offered by main militant group Mend over the weekend, which vowed not to attack oil fields until at least the end of the month to allow time to engage in talks with the government.
"For the moment at least peace prevails and oil shall soon be moving from Nigeria in force," said Dennis Gartman, editor of The Gartman Letter -- a daily trading note. He added: "This cannot be bullish of crude oil generally."
Unrest in Nigeria, including a string of kidnappings of foreigners and pipeline attacks, have reduced oil output about 25 pct over the past year.
Fears of further refinery problems in the US and lingering worries of crude oil supply interruptions from Nigeria, despite a temporary truce, helped prices hold onto most of last week's gains, said Base Commodities trader, Christopher Bellew.
At 10.32 am in London, benchmark Brent crude contracts for July delivery were down 17 cents at 68.90 usd per barrel, while New York crude contracts for July delivery were down 47 cents at 64.61 usd per barrel.
Refinery troubles in the US have squeezed the gasoline market for months. Fears are heightening that any more problems could tighten the balance further, with the world's top consumer now into its peak-demand driving season.
Brent crude oil struck a nine month high of 71.80 usd on May 24, propelled by a combination of volatile geopolitical tensions in Nigeria and Iran, the world's fourth largest producer and as traders fretted about low levels of gas inventories ahead of the peak-demand driving season which kicked off late last month.
Gasoline stocks in the US are still "well below the lower end of the average range," according to the US Department of Energy.
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