* Mideast unrest, Israel-Iran tension boost Brent
* U.S. January CPI, jobless claims slightly above forecasts
* Reuters monthly oil price poll sees fall in Brent soon
* Rise in U.S. crude inventories keeps lid on U.S. crude
(Updates prices, detail, comment)
By Anna Yukhananov
LONDON, Feb 17 (Reuters) - North Sea Brent crude oil rose to
around $104 per barrel on Thursday, near a two-and-a-half-year
high, as Israel-Iran tension and unrest in the Middle East
stoked fears of a disruption of oil flows.
Bahrain police stormed a square in Manama, killing at least
three people as protests in the Middle East and North Africa,
inspired by revolts in Tunisia and Egypt, gathered pace.
[]
Clashes were reported in tightly controlled oil producer
Libya, sandwiched between Egypt and Tunisia, though government
forces arrested activists preparing an anti-government "day of
rage" after new protests erupted in Yemen, Iran and Iraq.
[]
The dollar earlier hit a one-week low against a basket of
currencies on worries over rising Middle East tension. []
"All in all, the pace of change sweeping the region is truly
mind-boggling, and we find it unlikely oil prices will 'settle'
any time soon as long as this kind of upheaval continues to
spread," said Edward Meir, senior commodity analyst at brokers
MF Global.
Brent crude for April delivery <LCOc1> firmed 31 cents to
$104.09 by 1400 GMT, after settling $2.14 higher at $103.78 on
Wednesday, its highest close since September 2008, and off an
earlier intraday high of $104.52.
U.S. crude for March delivery <CLc1> was down 16 cents
$84.83 a barrel, after settling up 67 cents at $84.99 on
Wednesday, snapping three straight days of losses.
A Reuters poll of analysts and banks suggested on Thursday
that Brent would drop later this year as the risk premium from
unrest in the Middle East ebbs. []
"The current price is unsustainable," said Carsten Fritsch,
commodity analyst at Commerzbank in Frankfurt. "Tension in the
Middle East should calm down at some point, whereas (North Sea)
output should normalise," he said.
The spread between Brent and U.S. crude <CL-LCO1=R> held
above $16 per barrel after hitting a record of $16.31 a barrel
on Wednesday.
The Credit Suisse global research team said geopolitical
tensions would continue to lift global oil prices.
"However, we see risks for Brent prices to retrace below
$100 if the geopolitical issues are resolved," they said.
Gulf Arab foreign ministers will meet on Thursday evening to
discuss unrest in Bahrain, and U.S. senior officials will call
the Gulf island kingdom to urge government restraint.
[] []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For an interactive graphic on Middle East unrest, including
Bahrain, click: http://r.reuters.com/nym77r
For a graphic of asset returns in 2011, click:
http://r.reuters.com/suc97r
For a link to Reuters Insider news bulletin, focusing on
Reuters oil price poll: http://link.reuters.com/xet97r
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U.S. DATA
U.S. crude pared earlier losses after U.S. data showed
prices had risen more than expected in the world's biggest oil
consumer, though jobless claims also rose more than forecast.
January core consumer prices rose 0.2 percent, their fastest
pace in more than a year, and above expectations for 0.1 percent
gain, though the increase was not enough to suggest a build-up
in inflation pressures. []
Other data showed U.S. claims for unemployment benefits rose
more than expected last week, though the data still pointed at
gradual labour market recovery. []
Tensions between Israel and Iran also kept pressure on
markets.
Suez Canal officials said on Thursday plans by two Iranian
naval ships to cross the waterway had been cancelled.
[]
Israeli Foreign Minister Avigdor Lieberman said on Wednesday
the ships were expected to pass through the Suez Canal overnight
en route to Syria in a move he described as a "provocation."
U.S. crude was depressed by industry data showing crude
stocks rose last week, albeit less than expected.
Also helping widen the Brent-WTI premium was the latest rise
in inventory levels at the Cushing, Oklahoma, delivery point for
the New York Mercantile Exchange oil futures contract.
Crude stored at the hub rose 250,000 barrels last week to
37.7 million barrels, just below the 38.3 million barrel record
level hit in the week to Jan. 28, the Energy Information
Administration's weekly data showed. []
In total, U.S. crude stocks rose 860,000 barrels to 345.9
million barrels, its fifth straight weekly gain, but the
increase was less than the forecast 2.2 million-barrel rise.
(Writing by Christopher Johnson; additional reporting by
Jennifer Tan;editing by James Jukwey)
