* Oil steadies above $114 despite rising U.S. dollar
* Oil down 5.4 pct on Friday in biggest fall since Dec 2004
* Tropical Storm Fay made landfall on Sunday
* Russia says its troops will remain in one of Georgia's
main Black Sea ports (Changes headline, updates prices)
By Fayen Wong
PERTH, Aug 25 (Reuters) - Oil steadied above $114 a barrel
on Monday, pausing from previous session's 5.4 percent decline,
despite a rising dollar and diminishing supply concerns as
Tropical Storm Fay crossed over land.
Analysts said Russia's withdrawal of the bulk of its troops
from Georgia on Friday was also bearish for the market, but
geopolitical tensions between United States and Russia, the
world's second-biggest oil producer, would continue to lend
support to prices until Moscow withdraws its troops completely.
U.S. light crude for October delivery <CLc1> rose 9 cents
to $114.68 a barrel by 0528 GMT. The contract fell $6.59, or
5.4 percent, to settle at $114.59 a barrel on Friday -- the
biggest one-day fall in percentage terms since Dec. 27, 2004.
London Brent Crude <LCOc1> eased 2 cents at $113.90.
Oil has fallen about 22 percent since its peak of above
$147 struck mid-July on concerns high energy costs are taking a
toll on global fuel demand.
"I think traders in Asia are now feeling a bottom to the
market after prices fell over $6 on Friday, so some of them may
be seeing a buying opportunity at these price levels," said
Gerard Rigby, an analyst at Fuel First Consulting in Sydney.
"Lingering concerns about Russia and Georgia are also
giving some support to prices."
Russia, which began to pull out the bulk of its forces from
Georgia last week, said on Saturday its troops would patrol one
of Georgia's main Black Sea ports, defying Western demands for
a complete pullback to positions held before fighting broke out
over a Georgian rebel region. []
The easing of Tropical Storm Fay, which poured rain along
the U.S. Gulf Coast on Sunday local time, also diminished
concerns the storm might disrupt oil and natural gas production
at the Gulf of Mexico production areas.
Energy companies, including Chevron Corp <CVX.N> ExxonMobil
Corp <XOM.N>, BP Plc <BP.L>, ConocoPhillips <COP.N> and Royal
Dutch Shell <RDSa.L> said they were keeping track of the storm
but their operations were not affected.
The U.S. dollar rose to a two-year high against sterling on
Monday after data last week showed Britain's economy was
stalling, prompting expectations of an interest rate cut by the
Bank of England. []
Oil's sharp fall on Friday was prompted by a strengthening
U.S. dollar and reports that showed an uptick in OPEC crude oil
output and another showing an expected decline in U.S. travel
over the Sept. 1 Labor Day holiday weekend as high fuel prices
hit consumers.
Industry consultant Petrologistics said on Friday, OPEC oil
output was expected to rise in August by 450,000 barrels per
day, to 32.95 million bpd, a factor that could further beef up
inventory levels in consumer nations. []
The U.S. auto and travel group AAA said Labor Day holiday
travel was expected to fall this year by the largest amount in
at least eight years as consumers struggle with higher gasoline
prices and airfares.
(Reporting by Fayen Wong: Editing by Nick Trevethan)
