* Rebels regain key oil ports ahead of London Libya talks
* Brent to rise to $125.51 in 3 months-[]
* Coming Up: Weekly U.S. API petroleum stocks; 2030 GMT
(Updates throughout, previous SINGAPORE)
LONDON, March 29 (Reuters) - Brent crude eased on Tuesday,
falling for a third day running, as Libyan rebels advanced
against government forces. []
Brent crude futures for May delivery <LCOc1> fell 54 cents
to $114.26 a barrel by 0916 GMT. U.S. May crude futures <CLc1>
fell for a fourth day, down 61 cents to $103.37.
"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.
The rebels have regained control of key oil ports but
expectations of a quicker return to normal for crude exports
were muted. Traders expect the loss of Libya's nearly two
percent share of world crude output to last for months.
[]
"The outcome of the looming battle for Sirte will affect how
quickly oil exports from Libya come back on line," said Eurasia
Group analyst Cliff Kupchan said.
"If there is a standoff at Sirte leading to de facto
partition, any exports are unlikely for 3 to 6 months, with a
return to full output taking substantially longer," he added.
"If the rebels take Sirte and move on Tripoli, the timetable
could be somewhat expedited, though again full recovery would
take a significant period of time.
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 unrest in the Middle
East.
The uncertainty clouded the outlook for corporate earnings,
weighing on U.S. and Japanese shares. []
SAUDI SURPRISE
Top exporter Saudi Arabia unexpectedly called on oilfield
service firms to expand its oil rig count, gearing up to boost
production capacity. []
The kingdom has been at the forefront of reassuring
consumers that OPEC producers can easily make up for the loss of
Libyan oil.
Saudi sources have said it stepped up its own output to 9
million barrels per day and can increase by a further 3.5
million bpd if needed.
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.
"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)."
Crude oil stocks also likely rose in the United States last
week, keeping with seasonal trends, a preliminary Reuters survey
of analysts showed ahead of weekly inventory data. []
Higher imports were expected to meet demand as refiners
bring units back from maintenance, analysts said.
(Additional reporting by Florence Tan, Alejandro Barbajosa,
Randy Fabi; editing by William Hardy)
