* U.S. crude below $100
* Earthquake Japan's largest in 140 years
* Some refineries, nuclear power plants, manufacturers shut
(Updates prices)
By Ikuko Kurahone
LONDON, March 11 (Reuters) - Oil slid by on Friday, with
U.S. crude falling below $100, after an earthquake rocked Japan,
created a 10-metre tsunami and shut 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 $100.44 a by 1544 GMT. ICE Brent crude <LCOc1> fell
$1.40 to $114.07 a barrel. It has fallen from a 2-1/2-year high
of $119.79 on Feb. 24.
Metals and soft commodities also fell. []
Japan was hit by a magnitude 8.9 earthquake, the largest
since observations began in the late 19th century. About 200-300
bodies were found, said police in Miyagi, northern Japan, where
the quakes and the tsunami hit the hardest. The death toll was
expected to rise.
"We need to think what the potential impact on Japanese
economy from the quake will be and what the impact on global
economy will be," Olivier Jakob with Petromatrix said.
"That may weigh on oil demand from Japan and the oil price."
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, and
analysts pointed out the shutdowns might increase demand for
imports of refined 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 losses 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, and then spread across the Pacific. []
The Japanese government declared an emergency at nuclear
power plants and evacuated thousands of residents. No radiation
leak had been reported so far. []
Jakob and Tchilinguirian also pointed out the potential for
increased demand for natural gas and fuel oil from power
producers to compensate for shutdowns of nuclear capacity.
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Japan quake tears through commodity, energy sectors:
[]
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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MIDDLE EAST PROTESTS
In the Middle East, police flooded the streets of Saudi
Arabia's capital to deter a planned day of demonstrations, while
a small Shi'ite demonstrated was reported in Hofuf, in the
oil-producing east. []
In Libya, forces loyal to Libyan leader Muammar Gaddafi
entered the oil port of Ras Lanuf in the east of the country and
were fighting for control of the town, rebels said on Friday.
[]
"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 a research note.
Elsewhere in the region, Bahraini police blocked several
thousand protestors from reaching the royal palace.
[] In Yemen, tens of thousands of protestors
marched in the capital, and protests turned violent in the
southern port city of Aden. [] Kuwaiti riot police
fired tear gas to break up a small, peaceful demonstration by
stateless Arabs demanding greater rights.
European shares fell 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.
[]
(Reporting by Ikuko Kurahone, additional reporting by Alejandro
Barbajosa in Singapore; editing by James Jukwey and Jane Baird)
