UPDATE 3-Oil firms on MidEast, North African unrest

                                
 * Yemen opposition call for protest, Gaddafi holds ground
                                
 * Global markets watch Portugal's vote on austerity measure
                                
 * Coming Up: EIA U.S. weekly oil inventory report 
                                
 
                                
 (Updates prices)  
                                
 By Ikuko Kurahone
                                
 LONDON, March 23 (Reuters) - Oil steadied on Wednesday due
to concerns that unrest in Yemen may spill over into
neighbouring countries in the oil rich Middle East Gulf region,
while an expected increase in U.S. crude inventories capped
gains prices.
                                
 Brent crude futures <LCOc1> rose 9 cents to $115.76
a barrel at 0855 GMT. Prices have risen four out of the past
five sessions but fallen from the near $120 hit in late
February.
                                
 U.S. crude futures <CLc1> inched by 8 cents to $105.05.
                                
 Volume for both contracts were moderate as high volatility
in the recent weeks on the oil market has sent some investors to
sidelines and others into safer havens. [ID:nN22183790]
                                
 In Yemen, a small oil and gas producer, opposition groups
called on protesters to march on President Ali Abdullah Saleh's
Sanaa palace on Friday to demand he step down, hoping to end a
crisis that his allies abroad fear will benefit Islamic
militants.
                                
 Seven weeks of street protests against Saleh's 32-year rule
of the impoverished Arabian Peninsula state has raised alarm in
 Western capitals at the prospect of a country where al Qaeda
has entrenched itself falling apart. [ID:nLDE72M03K]
                                
 "While this transition is going on, it can only threaten oil
supplies and increase uncertainty - both things that will keep
oil prices strong," Christopher Bellew with Bache Commodities
said.
  <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
 More on Middle East unrest:       [nTOPMEAST]  [nLDE71O2CH]
 Libya graphics               http://link.reuters.com/neg68r
 Oil technicals                                   [TECH/C-O]
  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 Yemen's neighbour Saudi Arabia is the world's top oil
exporter and the only OPEC member nation with enough spare
capacity to compensate for supply disruptions elsewhere.
                                
 The civil unrest have been spreading across oil rich North
Africa and the Middle East, such as Tunisia, Egypt and Bahrain
and it has lead to shutting in bulk of Libya's oil output.
                                
 Western powers attacking Libya will end up in the dustbin of
history, Muammar Gaddafi said as his troops held back poorly
equipped rebel forces despite four nights of coalition air
strikes. [ID:nLDE72M003]
                                
Some lid on prices came from the United States, the world's
second-largest energy consumer. Analysts expected government
data to show a 1.6 million barrel increase in the week to March
18 when it is released later in the day. [EIA/S]
                                
 Global markets were also watching a key vote on austerity
measures in Portugal that could see the country's government
brought down. [MKTS/GLOB] [.EU]
                                
  FTSEurofirst 300 <.FTEU3> index of top European shares
opened lower then turned positive by 0943 GMT. [.EU]
                                
 Euro dipped broadly against other currencies. [FRX/]
                                
  (Reporting by Ikuko Kurahone in London and Alejandro
Barbajosa in Singapore; editing by Jason Neely)