* Renewed anger expected across MIdeast, North Africa
* Iran-Israel tensions continue to seethe
* Mixed US economic data provide few trading cues
* For a 24-hour technical outlook on oil:
* http://graphics.thomsonreuters.com/WT/20111802085125.jpg
By Jennifer Tan
SINGAPORE, Feb 18 (Reuters) - Brent crude oil rose towards
$103 a barrel on Friday, as unrest spreading across the Middle
East fanned fears of a supply disruption in the major
oil-producing region.
U.S. crude edged lower, but held above $86 a barrel, after
jumping more than $1.00 the previous day.
Parts of the Middle East and Arab North Africa could see
renewed public anger towards their governments on Friday, as
protesters in Bahrain bury four people killed when police broke
up an activist camp, and after crowds have taken to the streets
in Libya, Yemen and Iran in recent days.
Tensions between Israel and Iran continued to seethe amidst
uncertainty about Iran's plans to send navy ships through the
Suez Canal, in a move that Israel has called a "provocation".
"Short-term geopolitical nervousness will continue to
underpin Brent prices, but in terms of fundamentals, support
will come from the gradually recovering U.S. economy and the
ongoing momentum in China," said Dave Cohen, director at Action
Economics in Singapore.
"There doesn't seem to be any dramatic developments
overnight in terms of the unrest in the Middle East, so prices
might take a short-term breather," he added.
Brent crude for April delivery rose 12 cents to
$102.71 a barrel by 0300 GMT, after settling $1.19 lower at
$102.59. Wednesday's close of $103.78 was its highest since
September 2008.
U.S. crude for March delivery eased 8 cents to $86.28
a barrel, after settling 1.6 percent higher at $86.36, its
biggest gain in two weeks. Short-covering ahead of the
contract's expiry on Tuesday helped to pull prices higher.
The spread between the two grades <CL-LCO1=R> fell below
$14, after hitting a fresh record of $16.31 a barrel two days
ago.
But Brent oil prices are forecast to drop later this year as
analysts expect the risk premium for unrest in the Middle East
to ebb, a Reuters poll showed.
U.S. economic data released on Thursday was mixed,
signalling the economy was struggling to speed up recovery, but
the reports provided few trading cues.
January core consumer prices rose at their quickest pace in
more than a year and above expectations.
But U.S. initial jobless benefit claims rose more than
expected, while the Philadelphia Federal Reserve Bank said its
business activity index increased in February to its highest
reading since January 2004.
The dollar eased as the Swiss franc benefited from
safe-haven appeal in the wake of the Middle East tensions and
the euro gained after a solid Spanish debt auction.
The dollar index , which tracks the greenback's
performance against a basket of major currencies, slipped 0.3
percent to 77.981.
Shares in Asia's developed markets succumbed to a bout of
profit taking on Friday after posting solid gains this week.
(Editing by Ramthan Hussain)
