* Some ports in western Egypt affected by protests
* Technicals-US crude set for $94 this week []
* Coming Up: U.S. EIA weekly inventory report at 1530 GMT
(Updates throughout, changes dateline, pvs SINGAPORE)
By Christopher Johnson
LONDON, Feb 2 (Reuters) - Oil rose on Wednesday with North Sea Brent crude
futures near a 28-month high on concerns that unrest in Egypt would trigger
regime change across the Middle East and North Africa, the source of more than a
third of the world's oil.
Egyptian President Hosni Mubarak has said he will surrender power in
September, angering protesters who want an immediate end to his 30-year rule.
[]
Turkish Prime Minister Tayyip Erdogan urged Mubarak on Wednesday to start a
transition of power sooner rather than later, saying it was very important "to
get over this period with a temporary administration". []
ICE Brent for March <LCOc1> rose 30 cents to $102.04 a barrel by 0840 GMT,
after touching $102.08 on Tuesday, the highest price for a front-month contract
since September 2008. U.S. crude <CLc1> gained 40 cents to $91.17.
"With geopolitical tensions in Egypt remaining unresolved, price risks
remain skewed to the upside," said Credit Suisse analysts including Stefan
Graber. "We expect oil prices to ease once tensions fade due to ample global
inventories."
Mubarak's departure would reconfigure the politics of the Middle East, with
implications from Israel to oil giant Saudi Arabia.
King Abdullah of Jordan replaced his prime minister on Tuesday after
protests. []
Yemeni President Ali Abdullah Saleh said on Wednesday he would not seek to
extend his presidency in a move that would bring an end to three decades of rule
when his term expires in 2013. Saleh also vowed not to pass on power to his son.
[]
Sudan has also seen unrest, after Tunisia's president was overthrown by
demonstrations last month.
OPEC
Although the unrest in Egypt has so far had no effect on transit through the
Suez Canal or the Suez-Mediterranean (SUMED) oil pipeline, 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 controls the canal and the pipeline, which together moved over 2
million barrels per day (bpd) of crude and oil products in 2009.
At the back of many investors' minds is an unspoken worry that unrest in
North Africa could fuel similar protests in bigger oil producers such as Libya
or even Saudi Arabia, stirring fears of a temporary disruption to oil supplies.
The International Energy Agency said the oil market did not face any
emergency, but called on OPEC to remain "flexible" in the event unrest affects
supply. []
The Organization of the Petroleum Exporting Countries has refrained from
boosting production and sees no supply shortage.
OPEC member Libya's top oil official told Reuters the group did not need to
meet to discuss oil policy in February because the market is well supplied and
$100-per-barrel prices were justified. []
U.S. crude oil stocks rose a greater-than-expected 3.8 million barrels last
week, the API said on Tuesday, while inventories at Cushing, Oklahoma, climbed
667,000 barrels. []
Brent's premium to U.S. crude futures jumped to about $11 a barrel from
$8.50 after the American Petroleum Institute on Tuesday reported an increase in
crude stockpiles at the Cushing delivery point for the U.S. futures benchmark.
Gasoline stocks also rose more than expected, by 3.9 million barrels, while
distillate stocks, which include heating oil and diesel fuel, fell 1.1 million
barrels, the API said.
Government data on inventories and demand from the Energy Information
Administration follow on Wednesday at 1530 GMT.
Ahead of the API report, a Reuters survey of analysts 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. []
(Additional reporting by Alejandro Barbajosa in Singapore; Editing by Jason
Neely)
