* U.S. crude below $100
* Earthquake Japan's largest in 140 years
* Some refineries, nuclear power plants, manufacturers shut
* Europe shares hit 3-month low
* U.S. retail sales rose 1 percent in February
(Updates prices, adds Japan plants shut, U.S. retail data)
By Ikuko Kurahone
LONDON, March 11 (Reuters) - Oil slid by more than $3 on
Friday, with U.S. crude falling below $100, after an earthquake
rocked Japan, creating a 10-metre tsunami and shutting down
dozens of plants in the world's third-largest oil consumer.
The oil market was also keeping an eye on a planned day of
demonstrations in Saudi Arabia, the world's top oil exporter,
and violence in Libya, which has disrupted its oil exports.
U.S. crude <CLc1> fell to as low as $99.01 a barrel and was
trading at $99.65 by 1400 GMT. ICE Brent crude <LCOc1> fell
$2.31 to $113.12 a barrel by the same time. It has fallen from a
2-1/2-year high of $119.79 on Feb. 24.
Japan was hit by a magnitude 8.9 earthquake, the largest
since observations began in the late 19th century. About 200-300
bodies have been found, the local police in Miyagi, northern
Japan, where the quakes and the tsumami hit the hardest, said.
"This natural disaster could result in another sharp rise in
risk aversion on markets and a continuation of yesterday's
correction on commodity markets," said Commerzbank.
Japan is the third-largest energy consumer after China and
the United States and imports almost all its energy needs.
Some refineries and nuclear power plants were shut. Some
analysts pointed out the shutdowns may increase import demand
for refined oil products and fuels for electricity generators.
"Short-term the disruption in activity will be clearly
negative for Japanese oil demand, but you may find that post the
initial impact of the tsunami, there will be a need to deliver
oil products to meet demand if you suffer loss in refinery
output," said Harry Tchilinguirian, BNP Paribas' head of
commodity markets strategy.
The earthquake triggered a 10-metre tsunami that swept away
everything in its path, including houses, cars, ships and farm
buildings. Tsumani spread across the Pacific. []
The Japanese government declared emergency at nuclear power
plants and evacuated thousands of residents. No radiation leak
had been reported so far. []
European shares fell at the opening to a three-month low
after the quake in Japan and on growing unrest in the Arab
world. []
U.S. retail sales rose 1 percent, the largest gain since
October. But it did not reverse the fall in oil prices.
[]
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Graphics showing:
Middle East unrest http://r.reuters.com/nym77r
Libya unrest http://link.reuters.com/dew48r
Saudi Arabia's main oil region
http://link.reuters.com/gew48r
FACTBOX on Libya's oil sector []
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SAUDI PROTEST
Saudi Arabia's capital was quiet ahead of a planned day of
demonstrations, which will test whether activists calling for
political reform online will succeed in taking their protests to
the streets.
In Hofuf, more than 200 protesters took to the streets, two
activists told Reuters, responding to the call by online social
networks for protests in favour of political reform.
[]
A loose coalition of liberals, rights activists, moderate
Sunni Islamists and Shi'ite Muslims has called for reform, and a
Facebook page urging protests, strictly forbidden in the
conservative kingdom, attracted more than 30,000 supporters.
[]
"It is impossible to know what the outcome will be in the
Middle East, but while support for ... protests could prove to
be a short-term oil market inflection point, looking further
forward it would be optimistic to expect Libyan oil production
to return to normal levels this year," Lawrence Eagles with J.P.
Morgan said in its research note.
In Libya, forces loyal to Libyan leader Muammar Gaddafi have
entered the oil port of Ras Lanuf in the east of the country and
are fighting for control of the town, rebels said on Friday.
The unrest in oil rich North Africa and the Middle East has
so far taken precedence over economic woes. Friday protests are
also planned in other Gulf countries such as Yemen, Kuwait and
Bahrain, after the day's religious prayers, inspired by
upheavals in Tunisia and Egypt. []
(Reporting by Ikuko Kurahone, additional reporting by Alejandro
Barbajosa in Singapore; editing by James Jukwey and Jane Baird)
