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)
القدس الشريفعمان د ب أاليوم السابع
Newly-graduated Libyan police officers march during
their graduation ceremony at the compounds of a Police Academy in Tripoli,
Libya, October 31, 2013. REUTERS/Stringer