* EU, IMF agree 110-bln-euro bailout for Greece
* Oil spill bears down on Gulf coast as Obama visits
* Spill could slow U.S. crude imports, hamper energy output
* For a technical graphic on oil prices, see:
[] (Recasts, updates prices)
By Fayen Wong
PERTH, May 3 (Reuters) - Oil shed early gains to hover
around $86 a barrel in thin trade on Monday, as concerns about
the Euro zone's fiscal woes returned to the fore, while fresh
steps by China to cool its economy added to near-term
uncertainty.
European finance ministers agreed to a record 110 billion
euro ($147 billion) bailout for debt-stricken Greece on Sunday,
partially allaying fears of a spreading debt crisis in the
16-nation euro zone. []
However, investors fear the package, which still has to
obtain parliamentary approvals, would face stiff political
challenges and left open the question of which fiscally
vulnerable country in Europe might be next.
The worries wound back investors' risk appetite and helped
lift the U.S. dollar, which saw the index against a basket of
currencies rise 0.4 percent to 82.19.
U.S. crude for June delivery <CLc1> slipped 11 cents to
$86.04 a barrel by 0517 GMT. London Brent crude <LCOc1>
declined 8 cents to $87.36.
Furthermore, investors were wary about outlook after China
on Sunday raised the amount that lenders must keep in reserve
at the central bank to temper inflationary pressures, its third
such move this year. [] []
Trading in Asia was thin on Monday with markets in China,
Japan and Thailand closed on Monday for public holidays.
"The rescue package announced during the weekend may
protect Greece but does not remove the restructuring risk and
speculation is likely to turn to other fiscally challenged
European sovereigns," said Dariusz Kowalczyk, chief investment
strategist at SJ Seymour Group in Hong Kong.
"This means that we have not yet seen the worst of Europe's
fiscal woes."
The MSCI index of world stocks <.MIWD00000PUS> slipped 0.3
percent in Asian trade, taking its losses to nearly 4 percent
since hitting a 19-month high on April 15. The MSCI Asia
ex-Japan index <.MIAPJ0000PUS> fell 1.3 percent. []
Still, oil prices remain supported by speculation that the
giant oil spill off the U.S. Gulf of Mexico would help draw
down crude stocks, said Ben Westmore, a resource analyst at
National Australia Bank.
A vast oil slick bore down on the U.S. Gulf Coast on
Sunday, as desperate efforts to check the oil flow and disperse
and contain the spreading slick were being hampered by high
winds and rough seas. []
In the first sign that the massive oil spill, from a well
owned by BP, was affecting the region's energy production, the
U.S. government said two offshore production platforms in the
area have been shut as a safety precaution, as efforts to
complete a relief well to stem the oil flow could take 90 days.
For more stories on the oil spill, click on []
Comments from Saudi Arabian Oil Minister Ali al-Naimi, who
is in China for the Shanghai world Expo 2010, could also set
fresh directions for oil prices.
On the geopolitical front, Iran -- whose nuclear dispute
has raised the possibility of new regional conflict -- said on
Sunday it has developed a short-range defence system to combat
Cruise missiles. []
(Editing by Ed Lane)
