(Corrects ninth paragraph to show 1 million figure
countrywide)
* Egypt port disruptions, Jordan lift Brent above $102
* API says U.S. crude, gasoline stocks rose last week
* Coming up: EIA oil data, 10:30 a.m. EST (1530 GMT), Wed
(Updates with Mubarak address, API report, additional detail)
By Robert Gibbons
NEW YORK, Feb 1 (Reuters) - Brent oil prices rose to a
28-month peak on Tuesday, pushing above $102 a barrel as
disruptions at Egyptian ports and Jordan's government shake up
kept concerns about unrest in the region and the potential for
oil supply interruptions in focus.
U.S. crude prices fell in choppy trading ahead of weekly
reports expected to show domestic crude inventories rose last
week and on the perception that the Brent market was more
vulnerable to any immediate supply disruption.
The U.S. price slide left the benchmark West Texas
Intermediate's discount to Brent <CL-LCO1=R> at more than $10 a
barrel. It reached a near record above $12 last week.
The dollar's weakness supported oil and other
dollar-denominated commodities, like copper [], as the
euro hit a two-and-half month peak against the greenback on
improving risk appetites after strong U.S. and euro zone
manufacturing data. []
In London, ICE Brent crude for March <LCOc1> rose 73 cents
to settle at $101.74 a barrel, off its earlier $102.08 peak.
U.S. crude oil for March delivery <CLc1> fell $1.42 to
settle at $90.77 a barrel after soaring more than $6 in the
previous two sessions.
Shipping sources said there were major disruptions in
Egypt's Alexandria and Damietta ports due to staff shortages
and an absence of customs officials. []
Egypt's two major oil transit points, the Suez canal and
the SUMED pipeline, that brings oil from the Red Sea to the
Mediterranean, have not been affected by the protests, but the
disruptions at the ports to the west highlighted the potential
for problems. []
At least 1 million Egyptians took to the streets across the
country to participate in mass anti-government rallies.
[]
President Hosni Mubarak told the nation he would not leave
Egypt although he would step down from the presidency at the
end of his term, due to end when the country holds a
presidential election in September. []
King Abdullah of Jordan replaced his prime minister, after
protests over food prices and poor living conditions, adding to
concerns about the region. []
"Geopolitics is at the forefront of the sentiment at the
moment. And while we don't expect (oil) transit to be impacted,
the news of the port disruptions brings up the what-if?," said
Amrita Sen, oil analyst at Barclays.
The International Energy Agency said the oil market does
not face any emergency, but called on OPEC to remain "flexible"
in the event unrest affects supply. []
OPEC has refrained from boosting production and sees no
supply shortage. OPEC member Libya's top oil official told
Reuters the group does not need to meet to discuss oil policy
in February because the market is well supplied and
$100-per-barrel prices are justified. []
An OPEC delegate had said cartel ministers would hold talks
on the sidelines of an energy conference in Saudi Arabia on
Feb. 22. Oil's price rally, along with the belief that economic
recovery and demand growth are improving, have led to calls for
OPEC to raise output.
U.S. CRUDE INVENTORIES ON THE RISE
U.S. crude oil stocks rose 3.8 million barrels last week,
more than forecast, according to the industry group American
Petroleum Institute's report released late on Tuesday. []
Gasoline stocks rose 3.9 million barrels, while distillate
stocks, which include heating oil and diesel fuel, fell 1.1
million barrels, the API said.
U.S. crude prices extended losses trading after the API
report, dropping to a fresh intraday low of $90.33 in
post-settlement trading.
"The report was bearish. The more-than-expected build in
crude oil and gasoline will be the hallmarks of the report,"
said John Kilduff, partner at Again Capital LLC in New York.
Ahead of the API report, a Reuters analyst survey forecast
crude stocks to be up 2.7 million barrels, with distillate
stocks slipping 700,000 barrels and gasoline inventories rising
1.9 million barrels. []
U.S. crude prices have felt pressure from, "concerns about
high U.S. domestic inventories and the likelihood of further
builds in supplies," said Joe Possillico, broker at MF Global
in New York.
The U.S. Energy Information Administration's inventory
report will follow on Wednesday at 10:30 a.m. EST (1530 GMT).
(Additional reporting by Gene Ramos in New York and Jessica
Bachman in London;editing by Sofina Mirza-Reid)
