GO
Loading...

UPDATE 6-Oil rises on Syria, refinery fire lifts U.S. gasoline

* Turkey strikes on Syria raise regional security fears

* Refinery fires in U.S., Russia lift U.S. refined products

* Coming up: U.S. Sept. nonfarm payrolls 8:30 a.m. EDT Friday

(Recasts, updates prices, market activity; changes byline and dateline, pvs LONDON)

By Robert Gibbons

NEW YORK, Oct 4 (Reuters) - Oil prices rose on Thursday as Turkey's retaliatory strikes on a Syria sparked additional concern about potential disruptions to Middle East oil supply, while U.S. gasoline futures rallied after a fire at a refinery in Texas.

Crude futures bounced after Brent's 3-percent and U.S. crude's 4-percent retreat the previous session, with U.S. RBOB gasoline also rallying from slump on Wednesday.

Adding support for crude futures, the euro hit a two-week high against the dollar after European Central Bank President Mario Draghi affirmed his commitment to preserve the region's monetary system and its currency.

The dollar index fell and a weak U.S. currency is usually supportive to dollar-denominated commodities like oil.

Equities on Wall Street pushed higher at the open after U.S. jobless claims data came in near expectations and on the ECB news.

"Turkey's strikes on Syria caused the short covering after yesterday's losses in crude and the stock market rise and weak dollar also were factors," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

Brent November crude rose $1.39 to $109.56 a barrel by 11:13 a.m. EDT (1513 GMT), having reached $110.13.

U.S. November crude was up $1.16 at $89.30 a barrel, having reached $89.53, but still below the 100-day moving average of $89.93, a technical level closely watched by chart-watching traders.

U.S. RBOB gasoline jumped up 7.61 cents to $2.8756 a gallon, having reached $2.9006, after sliding nearly 7 cents the previous session. Thursday's session peak was back above the 100-day moving average of $2.8774.

U.S. heating oil , the benchmark distillate contract, rose 4.10 cents to $3.1074 a gallon. TURKEY, SYRIA SPAR

Turkey stepped up retaliatory artillery strikes on a Syrian border town, while its parliament approved further military action if there is more spillover from Syria's internal conflict.

Damascus apologized through the United Nations for shelling southeast Turkey on Wednesday and said it would not happen again, Turkey's Deputy Prime Minister Besir Atalay said.

REFINERY FIRES A fire broke out late Wednesday at Exxon Mobil Corp's

refining and chemical complex in Baytown, Texas, the largest operating U.S. refinery.

According to sources familiar with refinery operations, the fire broke out at the diesel hydrotreating unit, which uses hydrogen to remove sulfur from motor fuel at the 560,000-barrel per day (bpd) refinery.

The smaller, 130,000-bpd, Saratov refinery in Russia also caught fire on Thursday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic - Euro zone growth: Graphic - ECB: Graphic - oil in euros: Graphic - Assets in 2012: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

(Additional reporting by Alice Baghdjian in London and Ramya Venugopal in Singapore; Editing by Marguerita Choy)

((robert.gibbons@thomsonreuters.com)(+1 646 223 6059)(Reuters Messaging: robert.gibbons.reuters.com@reuters.net))

Keywords: MARKETS OIL/