(Repeats correction, no changes to headline or text)
* Surprise U.S. crude draw spurs buying
* Keystone pipeline outage, Doha meeting also support crude
* U.S. oil drillers cut rigs for 3rd week to Nov 2009 lows
By Barani Krishnan
NEW YORK, April 8 (Reuters) - Oil prices rose more than 6
percent on Friday to end with the biggest weekly gain in a month
as drawdowns in U.S. crude stockpiles fed hopes that a punishing
global oversupply may be approaching a tipping point after
nearly two years.
The shutdown of the Keystone crude pipeline to Cushing,
Oklahoma supported U.S. crude futures. Oil also drew support
after Russia said its crude output fell in April, ahead of a
meeting of major oil-producing countries in Doha aimed at
freezing output.
U.S. gasoline RBc1 and diesel HOc1 prices rallied more
than 5 percent each. U.S. crude has mostly gained this year from
cheap gasoline pump prices and benign driving weather. Ultra low
sulfur diesel, also known as heating oil, rebounded this week on
forecasts for seasonably cold weather through late April.
Brent crude futures LCOc1 settled up $2.51, or 6.4
percent, at $41.94 a barrel, hitting a session high above $42.
U.S. crude futures CLc1 closed up $2.46, or 6.6 percent,
to $39.72. Earlier, it rose to nearly $40.
For the week, both benchmarks rose about 8 percent, their
most since the week ended March 4.
"We are starting to draw crude inventories in the U.S." said
Scott Shelton, energy broker with ICAP (LON:IAP) in Durham, North
Carolina. "Run rates are rising and U.S. production is falling."
"This is very different I think than what was expected. The
market perceives that these draws may continue as the Keystone
outage will increase the likelihood," Shelton said.
U.S. crude stockpiles fell by nearly 5 million barrels last
week versus analysts forecasts for a build of 3.2 million
barrels. EIA/S
U.S. energy firms cut oil drilling rigs for a third week in
a row, adding to improving fundamentals. RIG/U
In Brent, the front-month contract has been trading at its
smallest discount to the second-month LCOc1-LCOc2 since
January, indicating more upward potential for the European
benchmark.
"We are continuing to cite the exceptional strength in the
Brent curve structure as a bullish consideration to the entire
energy spectrum," said Jim Ritterbusch at Chicago-based oil
markets consultancy Ritterbusch & Associates.
Aside from planned oilfield maintenance works in Norway and
Britain that are supporting Brent, global crude prices have also
been helped by last month's disruptions in Nigerian supplies at
a venture operated by Royal Dutch Shell RDSa.L .
"Put Doha on top of it, and your eyes are looking towards
the tightening of the market," said Bjarne Schieldrop, chief
commodities analyst at SEB Bank in Oslo.