New York - The price of oil fell on Monday as Exxon shut a pipeline that carries oil out of the Midwest and a report showed a cooling of United States manufacturing activity.
Benchmark oil for May delivery fell 16 cents to close at $97.07 per barrel on the New York Mercantile Exchange. It was the first decline since March 21, but the price was up from a low of $95.92 in the morning.
Exxon Mobil shut its Pegasus pipeline in Arkansas after a leak. The pipeline, with a capacity of 96 000 barrels a day, carries Canadian crude oil from the Midwest to refineries in the Gulf of Mexico. The closure raised the prospect that refiners would resort to buying more imported crude.
Oil stayed lower after an industry group said growth in US manufacturing activity slowed in March. The Institute for Supply Management's manufacturing index dropped to 51.3 from 54.2 in February.
Oil rose $3.52 a barrel, or 3.8 percent last week, driven by signs of strength in the US economy. The gain for the month of March was 5.6 percent. - Sapa-AP