* ICE Brent crude around $98, near 27-month highs
* Dollar stronger, euro weakens <.DXY>
* NYMEX-Brent spread narrows after hitting 23-month high
* Coming up: OPEC Monthly Oil Market Report approx 1130 GMT
(Updates throughout, changes dateline, pvs SINGAPORE)
By Claire Milhench
LONDON, Jan 17 (Reuters) - Oil slipped on Monday as the
dollar strengthened and equities faltered while U.S. markets
closed for the Martin Luther King public holiday.
North Sea Brent crude futures on the Intercontinental
Exchange (ICE) consolidated around $6 above U.S. crude oil
futures and were not far below $100 per barrel, a level not seen
since the beginning of October 2008.
U.S. crude for February <CLc1> fell 65 cents to $90.89 by
0900 GMT, while ICE Brent for March lost 50 cents to $97.88.
The spread between the two futures contracts has narrowed
since the ICE Brent contract for February expired on Friday. At
one point on Friday, the spread between the two February
contracts hit more than $8.00 a barrel, its widest in 23 months.
Traders said the U.S. public holiday was likely to help keep
oil futures within fairly narrow ranges on Monday.
Christopher Bellew, at broker Bache Commodities, said the
stronger dollar had put pressure on commodities markets:
"The oil price has been in an uptrend since the middle of
November and now we are getting close to $100. The weather in
the northern hemisphere has turned a bit milder, and the end of
winter is in sight. It's either pausing or going to retrace,"
Bellew said.
The S&P 500 index of U.S. companies ended a seventh straight
week of gains on Friday with a bank-led rally amid healthy
volume after encouraging financial results from JPMorgan. []
But Asian shares mostly fell on Monday, led by a drop in
Shanghai in the wake of China's latest attempt to contain
inflation. []
The benchmark Shanghai Composite Index <> closed down
more than 3 percent. The index lost 1.7 percent last week amid
fears over monetary tightening steps. []
ALARMING
European shares [] edged higher early on Monday as
investors awaited to see if euro zone officials would raise the
euro zone bloc's safety fund. The euro <EUR=> eased as the
dollar rose against a basket of currencies <.DXY>.
A weaker dollar tends to support dollar-denominated
commodities such as oil, making them cheaper for holders of
other currencies.
The head of the International Energy Agency, Nobua Tanaka,
said on Monday oil prices were alarming at current levels and
would have a negative impact.
But the UAE's oil minister, said fluctuating prices were not
a worry: "The price keeps going up and down and all I can say
for now is that we are happy," Mohammed al-Hamli told reporters.
Al Hamli said markets were well supplied and prices
reflected market conditions. [] []
Secretary General Abdullah al-Badri told an Austrian
newspaper that while OPEC was ready to act to address supply
shortages in the oil market, it would not intervene if prices
were driven by speculation. [].
At this stage, higher output would not stem a rise in oil
prices, as the climb is driven by increasing demand in emerging
countries, chief executive of French oil major Total <TOTF.PA>
Christophe de Margerie told Reuters on Sunday. []
OPEC will release its monthly oil market report later on
Monday with attention focusing on global demand, supply
forecasts and inventory data. []
Speculators increased their net long crude oil futures
positions in the week through Jan. 11, the Commodity. Futures
Trading Commission (CFTC) said on Friday.
Money managers, the group containing hedge funds and other
speculative investors, raised their net long positions to
195,655 from 175,862 positions in the previous week.
In Alaska, the operator of the Trans Alaska Pipeline System,
which has been struggling for the past week with a leak in
piping at the Prudhoe Bay intake station, said the oil artery
would resume normal operations late on Sunday or early Monday.
[]
(Additional reporting by Seng Li Peng in Singapore and
Christopher Johnson in London; editing by Keiron Henderson)
