Druzhba pipeline temporarily suspended
China39;s COVID policy dims demand outlook
U.S. stockpiles decline, more data awaited

LONDON, Nov 16 Reuters Oil prices rose on Wednesday, erasing earlier losses, after an incident involving a commercial vessel off the coast of Oman, but rising COVID19 cases in China capped gains.

Brent crude futures gained 65 cents, or 0.7, to 94.51 a barrel by 0854 GMT, and U.S. West Texas Intermediate WTI crude futures rose 35 cents, or 0.4, to 87.27 a barrel. Both benchmarks fell more than 1 earlier in the session.

The United States Navy39;s Fifth Fleet said it aware of an incident on Wednesday in the Gulf of Oman involving a commercial vessel, Commander Timothy Hawkins told Reuters.

The Associated Press had reported that a Liberianflagged oil tanker operated by the Singaporebased Eastern Pacific Shipping was struck in an exploding drone attack off the Gulf of Oman.

Oil prices settled higher on Tuesday after oil supply to parts of Europe via a section of the Druzhba pipeline was temporarily suspended, according to oil pipeline operators in Hungary and Slovakia.

The disruption was concurrent with an explosion in eastern Poland near the Ukraine border that killed two people and raised the possibility that the RussianUkraine conflict could spill over.

But after the initial kneejerk rally in oil prices, the tepid market followthrough reflects the significant prudence that will be taken to avoid an escalation, said Stephen Innes, managing…