* Brent falls as much as 75 cents to $114.05; WTI drops to
$103.18
* Rebels regain key oil ports ahead of London Libya talks
* Brent to rise to $125.51 in 3 months-technicals
[]
* Coming Up: Weekly U.S. API petroleum stocks; 2030 GMT
(Updates prices)
By Florence Tan
SINGAPORE, March 29 (Reuters) - Brent crude fell for a third
day running on Tuesday as Libyan rebels gained ground against
embattled leader Muammar Gaddafi, boosting expectations that
supplies from the nation may be restored quicker than expected.
Rebels, emboldened by Western-led air strikes against
Gaddafi's troops, have regained control of key oil ports and
advanced west. The progress comes as more than 40 governments
and international organisations meet on Tuesday in London to try
to lay the groundwork for a Libya without Gaddafi.
[]
Trading volume for U.S. crude fell on Monday to the lowest
this year as Japan's struggle to contain the world's worst
nuclear crisis in 25 years countered fears of lower crude
supplies over the fighting in Libya and the unrest in the Middle
East.
The uncertainty clouded the outlook for corporate earnings,
weighing on U.S. and Japanese shares.
Brent crude futures for May delivery <LCOc1> edged down 12
cents to $114.68 a barrel by 0632 GMT after earlier falling as
much as 75 cents. U.S. May crude futures <CLc1> declined for a
fourth day, down 5 cents to $103.93.
Brent's premium to the U.S. benchmark <CL-LCO1=R> hovered
near $11, after narrowing from a March 1 record above $17.
"There's talk in the market about oil supply from Libya
being restored quicker than anticipated," said Ben Westmore, a
commodities analyst at National Australia Bank.
"But we haven't had any news that the bombings have
significantly abated, so it could be a very short-term
reaction."
Qatar became the first Arab country to recognise Libya's
rebels, according to a Monday report by the Qatari state news
agency, a day after a senior Libyan rebel official said Qatar
had agreed to market crude oil produced from east Libyan fields
that Gaddafi no longer controls. []
A U.S. Treasury official said rebels could sell Libyan crude
free from sanctions imposed against transactions with Gaddafi's
government.
Ongoing fighting and concerns over U.S. and United Nations
sanctions are likely to keep crimping Libya's output, rebel
leaders, oil traders and analysts said. []
SUPPLY RISES
Top exporter Saudi Arabia unexpectedly called on oilfield
service firms to expand its oil rig count, gearing up to boost
production capacity. []
"I don't think that has a big impact on the market in the
short term," Westmore said. "Any increase to exploration I would
take as wanting to keep spare capacity," in the long term.
Saudi state-run oil giant Aramco met with leading oil
service companies including Halliburton over the weekend,
unveiling plans to boost the country's rig count this year and
next to 118, from around 92 now, Simmons & Co analyst Bill
Herbert wrote in a research note.
To make up for lost output in Libya, members of the
Organization of the Petroleum Exporting Countries (OPEC),
including Saudi Arabia, United Arab Emirates, Kuwait and Angola,
have unilaterally boosted output, the U.A.E's OPEC governor
said. []
Crude oil stocks are also likely to rise in the United
States last week, keeping with seasonal trends, a preliminary
Reuters survey of analysts showed.
Higher imports are expected to meet demand as refiners bring
units back from maintenance, analysts said.
(Additional reporting by Alejandro Barbajosa and Randy Fabi;
Editing by Manolo Serapio Jr.)
