UPDATE 9-Oil settles higher as key U.S. fuel pipeline plans restart

* U.S. government working to aid Colonial after cyberattack
* Colonial says main fuel lines shut, some smaller lines
restart
* Map of Colonial Pipeline system: https://tmsnrt.rs/33upZXs

(Updates throughout)
By Jessica Resnick-Ault
NEW YORK, May 10 (Reuters) - Oil prices settled higher on
Monday after a major U.S. fuel pipeline said it could largely
restart within the week after a cyberattack forced its shutdown.
Potential U.S. demand growth boosted crude prices,
offsetting fears that a resurgent coronavirus pandemic in India
would cut demand in Asia.
Colonial Pipeline COLPI.UL , the largest fuel pipeline in
the United States, said on Monday it expects to "substantially"
restore operational service by the end of the week. system was shut by a cyberattack on Friday, and by
Sunday some minor conduits had been reopened while the main
lines remained shut.
Last week, traders' focus had shifted to supportive factors
around the U.S. opening. "Now the market will be watching the
pipeline story," said Phil Flynn, a senior analyst at Price
Futures Group in Chicago.
Brent crude LCOc1 settled up 4 cents, or 0.1%, at $68.32 a
barrel. U.S. West Texas Intermediate (WTI) crude CLc1 settled
up 2 cents, or 0.03% at $64.92. Both benchmarks rose more than
1% last week, their second consecutive weekly gain.
"If the pipelines were to remain out of action for any
length of time, this would have far-reaching effects on the oil
market not only in the U.S., but also in Europe," said
Commerzbank analyst Carsten Fritsch.
"That said, it is currently assumed that the disruption to
the pipelines will be resolved in a matter of days, so the
impact should be limited."
The White House was working with Colonial to help it
recover. Commerce Secretary Gina Raimondo said the pipeline fix
was a top priority.
The U.S. government has not received any requests to waive
the Jones Act in response to the pipeline shutdown, a spokesman
for the U.S. Customs and Border Protection said on
Monday. A top White House national security official said the U.S.
intelligence community is working to determine whether the
hackers of the Colonial Pipeline have ties to the Russian
government.
Anne Neuberger, deputy national security adviser for cyber,
told reporters at a White House briefing that the FBI has been
tracking the ransomware group DarkSide since at least last
October. A news release issued in the name of DarkSide said its
goal was to make money and not create problems for society.
Brent crude has risen more than 30% this year, supported by
supply cuts by the Organization of the Petroleum Exporting
Countries and allies, known as OPEC+, and easing coronavirus
movement restrictions in the United States and Europe.
But the worsening pandemic in Asia has weighed. Indian
coronavirus infections and deaths held close to record daily
highs on Monday.

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Colonial Pipeline system map https://tmsnrt.rs/33upZXs
CHART: U.S. oil may rise to $66.52 Brent oil may retest resistance at $69.87 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>