Oil declines on restart of pipelines shut by US Midwest ice storm

Oil prices dropped Wednesday in Asia on reports pipelines shut by an ice storm in the US Midwest had been restarted, and after the Federal Reserve cut a key interest rate less than many had hoped. An ice storm that caused outages of key US oil pipelines helped drive oil prices up by more than $2 a barrel in the previous session. But Dow Jones Newswires reported that at least one of the pipelines - some of which serve the closely watched New York Mercantile Exchange delivery terminal at Cushing, Oklahoma - had been quickly restarted and that three others would soon follow. Light, sweet crude oil for January delivery fell 65 cents to $89.37 a barrel in Asian electronic trading on the Nymex by midday in Singapore. The contract rose $2.16 to settle at $90.02 a barrel Tuesday.