Oil fell over 9 in first two days of year, most since 1991
Colonial shuts down Line 3 for unplanned maintenance
API figures shows U.S. crude, gasoline stocks rise sources
Coming up EIA supply report, 1530 GMT

LONDON, Jan 5 Reuters Oil rebounded on Thursday after posting the biggest twoday loss for the start of a year in three decades with the shutdown of a U.S. fuel pipeline providing support, though economic concerns capped gains.

Big declines in the previous two days were driven by worries about a global recession, especially since shortterm economic signs in the world39;s two biggest oil consumers, the United States and China, looked weak.

Helping drive the gains on Thursday was a statement from top U.S. pipeline operator Colonial Pipeline, which said late on Wednesday its Line 3 had been shut for unscheduled maintenance with a restart expected on Jan. 7.

This morning39;s rebound is due to the shutdown of Line 3 of the Colonial pipeline, said Tamas Varga of oil broker PVM. There is no doubt that the prevailing trend is down; it is a bear market, he added.

Brent crude was up 1.22, or 1.6, to 79.06 a barrel at 0922 GMT, while U.S. West Texas Intermediate crude futures gained 1.02, or 1.4, to 73.86.

Both benchmarks39; cumulative declines of more than 9 on Tuesday and Wednesday were the biggest twoday losses at the start of a year since 1991, according to Refinitiv Eikon data.

Reflecting nearterm bearishness, the nearby contracts of the two benchmarks traded…