Crude oil rose for a second day after a platform owned by Mariner Energy Inc. in the Gulf of Mexico was struck by an explosion, bolstering concern that regulations will reduce output in the region.

Oil rebounded after the U.S. Coast Guard reported the blast, which occurred 90 miles off the Louisiana coast. The Obama administration instituted a temporary moratorium on deep- water oil and gas drilling in the Gulf on May 27 in reaction to a BP Plc oil spill, the worst in U.S. history.

"We're rallying because of the explosion on the oil platform," said Carl Larry, leader of Oil Outlooks and Opinions LLC in Houston. "It's clear that the government now has the ammunition to move ahead with a drilling moratorium. There will be higher costs and a slowdown in production from the Gulf."

Crude oil for October delivery rose $1.11, or 1.5 percent, to settle at $75.02 a barrel on the New York Mercantile Exchange. Prices are up 10 percent from a year ago. Futures dropped as much as 80 cents, or 1.1 percent, prior to the platform blast.