UPDATE 4-Oil hovers near two-week high on Ireland rescue

                                
 * Oil remains strong despite dollar rally, stocks fall
                                
 * Reuters oil poll shows price estimates rise upwards
                                
 * Reuters OPEC survey shows slightly better compliance
 
                                
 (Updates detail, previous SINGAPORE)
                                
 By Christopher Johnson and Dmitry Zhdannikov
                                
 LONDON, Nov 29 (Reuters) - Oil rose to a two-week high on
Monday after the European Union approved a rescue plan for
Ireland but persisting worries about the health of other euro
zone members trimmed some of the gains later.
                                
 Worries that a spreading crisis within the euro zone would
keep a lid on growth and hence energy demand have helped
pressure commodities prices over the last week, pulling down oil
from a two year high of $88.63 on Nov. 11.
                                
 U.S. crude for January <CLc1> traded 1 percent up to $84.59
a barrel at 1310 GMT after rising 1.5 percent to a high of
$85.03 a barrel earlier on Monday.
                                
 ICE Brent for January <LCOc1> rose 77 cents to $86.35 with
oil gaining despite the dollar strength with the greenback
rising by 0.5 percent against a basket of currencies <.DXY> and
the euro hitting a two-month low. [ID:nLDE6AS18X]
                                
 Finance ministers from the 16-nation euro zone unanimously
endorsed an emergency loan package of 85 billion euros ($115
billion) to help Dublin cover bad bank debts and bridge a huge
budget deficit. [ID:nLDE6AR03X]
                                
 "In our opinion the bail-out of Ireland will not be a
trend-changer until the markets have confidence that
Portugal/Spain are out of danger and for now the Irish plan has
done nothing to weaken the CDS on Portugal or Spain," said
Olivier Jakob from Petromatrix.
                                
 Credit Default Swaps reflects the cost of insuring a
borrower against a potential default.
                                
 However, some analysts noted that oil prices showed more
resistance than other assets classes with U.S. stock index
futures turning negative on Monday [ID:nN29194374]
                                
 "The southern European sovereign debt crisis would have to
take a severe turn for the worse to derail positive commodity
price trends that are finding strong support from improving
fundamentals and positive market sentiment towards growth
assets," Barclays Capital analysts said in a report.
                                
 Euro zone economic sentiment improved more than expected in
November, data showed on Monday, [ID:nBRLTME68N]. Later in the
week, the focus will shift to China's and European PMIs,
followed by Eurozone GDP data and an ECB interest rates meeting
followed by US non-farm payrolls and unemployment.
                                
 A Reuters November oil price poll showed that most analysts
were revising their price estimates upwards [O/POLL] while a
Reuters survey of OPEC showed slightly better compliance of the
organisation with production curbs [ID:nLDE6AP1NF]
                                
 
                                
 GEOPOLITICAL RISKS
                                
 South Korean President Lee Myung-bak on Monday labelled
North Korea's artillery attack on a west coast island a crime
against humanity and said the South would retaliate against any
further provocation. [ID:nL3E6MT0XZ]
                                
 China on Sunday called for emergency talks to resolve the
crisis, and Seoul and Tokyo said they would study the proposal,
as the U.S. and South Korean militaries started a massive drill.
                                
 Tensions between North and South Korea have mostly been
bearish for the oil market because of the implications that war
would have on demand at the heart of Asia's top consuming
region. But other geopolitical events were having a mild bullish
effect on the market, traders said.
                                
 Saudi Arabia's King Abdullah has repeatedly urged the United
States to attack Iran's nuclear programme and China directed
cyberattacks on the U.S., according to a vast cache of U.S.
diplomatic cables released on Sunday in an embarrassing leak
that undermines U.S. diplomacy. [ID:nN28175961]
                                
 King Abdullah, being treated in New York for a blood clot
which complicated a slipped disc, has started rehabilitation and
his health is "very reassuring", the kingdom's health minister
said on Sunday. [ID:nLDE6AR0G2]
                                
 Enbridge Inc's <ENB.TO> 670,000-barrel-a-day Line 6A oil
pipeline in the U.S. Midwest was expected to run at reduced
rates until this week, creating another costly bottleneck for
Canadian crude exports, the company said on Friday.
[ID:nN26122553]
                                
 Jakob from Petromatrix said that a cold spell in Europe was
supportive of the oil price but temperatures in Chine have been
so far above normal. He noted that oil prices were back to the
start-of-2008 levels and more than double the start-of-2009.
                                
 "While the economy and the oil fundamentals have greatly
improved from the start of 2009 we do believe that the global
economy is still globally weaker and that the oil supply system
has greater spare capacity than at the start of 2008," he said.
 (Additional reporting by Alejandro Barbajosa; editing by
William Hardy)