New Libya unrest, Egypt tensions support oil prices
* U.S. GDP data eyed for clues on Fed's stimulus plans
* Forecasts for US crude stocks to gain 1.8 mln bbls (Recasts, updates throughout, changes dateline from previous SINGAPORE)
By Ron Bousso
LONDON, Nov 5 (Reuters) - Brent crude oil futures steadied on Tuesday near a four-month low touched the previous day as worries over a prolonged period of reduced exports from Libya helped the benchmark hold above $106 a barrel.
Heavy shooting erupted early on Tuesday in Tripoli, the latest unrest in the OPEC producer that highlights the government's inability to control militia groups.
Brent crude was up 24 cents at $106.47 a barrel at 1015 GMT after hitting a four-month low of $105.13 overnight. U.S. oil was down 3 cents at $94.59, having also slumped to a four-month low in the earlier session.
Expectations for rising crude stockpiles in the United States have put downward pressure on prices, particularly for the U.S. benchmark.
"The ongoing delivery outages in Libya are preventing prices from falling," analysts at Commerzbank said in a note to clients.
Renewed tensions in Egypt, where ousted president Mohamed Mursi went on trial and could face a death sentence, also supported oil, Commerzbank said.
Investors are looking for important data from the United States later this week, including gross domestic product (GDP) and employment, to offer a clearer view of the outlook for demand in the world's biggest oil consumer.
The data could also give clues on when the Federal Reserve may start to roll back its monetary stimulus, which would reduce the supply of dollars and make dollar-denominated assets such as oil more expensive for holders of other currencies.
Comments by top Fed officials overnight showed that a cut-back in the stimulus was not imminent.
"We will be looking at the data for signs on when the tapering will come. People are thinking it will be pushed back and back," Global Insight analyst Simon Wardell said.
LIBYA, OIL STOCKS
Recent protests and strikes at ports and oilfields had already knocked Libyan crude production down to some 10 percent of its capacity of 1.25 million barrels a day.
"Libya will be up and down and will average 500,000 to 700,000 barrels per day for the next few months," Wardell said.
The government has been trying to reopen eastern oil ports and fields blocked since summer by militias and tribes demanding a greater share of power and oil wealth.
On the demand side, a Reuters survey of six analysts ahead of weekly inventory reports from industry group the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) forecast that crude stocks would increase by an average of 1.8 million barrels.
"Even with sporadic disruptions in Iraq and Libya, the supply side looks good. The uncertainty at the moment is what will happen with demand. Although the global economy is set to pick up next year, we will not see the same oil demand growth we saw a few years ago," Wardell said. (Additional reporting by Manash Goswami; Editing by Jane Baird)
* U.S. GDP data eyed for clues on Fed's stimulus plans
* Forecasts for US crude stocks to gain 1.8 mln bbls (Recasts, updates throughout, changes dateline from previous SINGAPORE)
By Ron Bousso
LONDON, Nov 5 (Reuters) - Brent crude oil futures steadied on Tuesday near a four-month low touched the previous day as worries over a prolonged period of reduced exports from Libya helped the benchmark hold above $106 a barrel.
Heavy shooting erupted early on Tuesday in Tripoli, the latest unrest in the OPEC producer that highlights the government's inability to control militia groups.
Brent crude was up 24 cents at $106.47 a barrel at 1015 GMT after hitting a four-month low of $105.13 overnight. U.S. oil was down 3 cents at $94.59, having also slumped to a four-month low in the earlier session.
Expectations for rising crude stockpiles in the United States have put downward pressure on prices, particularly for the U.S. benchmark.
"The ongoing delivery outages in Libya are preventing prices from falling," analysts at Commerzbank said in a note to clients.
Renewed tensions in Egypt, where ousted president Mohamed Mursi went on trial and could face a death sentence, also supported oil, Commerzbank said.
Investors are looking for important data from the United States later this week, including gross domestic product (GDP) and employment, to offer a clearer view of the outlook for demand in the world's biggest oil consumer.
The data could also give clues on when the Federal Reserve may start to roll back its monetary stimulus, which would reduce the supply of dollars and make dollar-denominated assets such as oil more expensive for holders of other currencies.
Comments by top Fed officials overnight showed that a cut-back in the stimulus was not imminent.
"We will be looking at the data for signs on when the tapering will come. People are thinking it will be pushed back and back," Global Insight analyst Simon Wardell said.
LIBYA, OIL STOCKS
Recent protests and strikes at ports and oilfields had already knocked Libyan crude production down to some 10 percent of its capacity of 1.25 million barrels a day.
"Libya will be up and down and will average 500,000 to 700,000 barrels per day for the next few months," Wardell said.
The government has been trying to reopen eastern oil ports and fields blocked since summer by militias and tribes demanding a greater share of power and oil wealth.
On the demand side, a Reuters survey of six analysts ahead of weekly inventory reports from industry group the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) forecast that crude stocks would increase by an average of 1.8 million barrels.
"Even with sporadic disruptions in Iraq and Libya, the supply side looks good. The uncertainty at the moment is what will happen with demand. Although the global economy is set to pick up next year, we will not see the same oil demand growth we saw a few years ago," Wardell said. (Additional reporting by Manash Goswami; Editing by Jane Baird)
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