(corrects to show pipeline shut over the weekend not overnight, in paragraph 2)
* EU works on second bailout package for Greece
* Canada-U.S. crude pipeline shut by leak, lifts crude
* US June gasoline, heating oil contracts expire Tuesday (Recasts, updates prices, market activity, changes byline and moves dateline from previous LONDON)
By Robert Gibbons
NEW YORK, May 31 (Reuters) - Oil prices rose $2 on Tuesday on the closure of a pipeline carrying Canadian crude to the United States, while a dollar decline on new hopes for a Greece debt bailout provided more incentive for other currency holders to buy.
TransCanada Corp
The 591,000-barrel-a-day pipeline runs from Alberta to the key Cushing, Oklahoma, oil hub, the delivery point for the U.S. benchmark light sweet crude contract. [ID:nN31283793]
"It is still unclear when operations will be resumed," analysts at JBC Energy said in a note. "In case of a longer disruption, we might see a noticeable crude stock draw in Cushing in next week's US inventory reports."
Brent crude for July delivery
U.S. July crude
Despite Tuesday's rally, both crude oil contracts were on pace to end lower for the month, following a commodities sell-off earlier in May.
The euro
Even so, disappointing reports showing falling U.S. home prices, a drop in U.S. consumer confidence in May and much slower growth than expected in the U.S. Midwest, helped limit oil's rise. [ID:nN31289567]
U.S. gasoline
Oil prices also received lift from the end of a truce between tribal groups and forces loyal to Yemen's President Ali Abdullah Saleh. [ID:nLDE74U00R]
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For timeline on Yemen troubles [ID:nLDE74H12F]
For an analysis on al Qaeda in Yemen [ID:nLDE74Q08P]
For more on Yemen unrest [ID:nLDE73R1DP]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Claire Milhench in London and Seng Li Peng in Singapore; Editing by Alden Bentley)