* U.S., France, Germany, call for speedy Egypt transition
* Safe-haven buying lifts dollar, pressures oil
* U.S. crude pares gains as inventories up a third week
* Coming Up: US weekly jobless claims, 8:30 a.m. EST Thurs
(Recasts, updates prices, market activity; new byline,
changes dateline, previously LONDON)
By Gene Ramos
NEW YORK, Feb 2 (Reuters) - Oil prices slipped on Wednesday
after the dollar rebounded as investors nervous about the
crisis in Egypt bought greenbacks, and as U.S. data showed
crude stockpiles rose for the third straight week.
North Sea Brent crude oil futures dipped from a 28-month
high on fears that the upheaval in Egypt could spread across
the Middle East and north Africa, source of a third of the
world's oil supply.
Across the Atlantic, U.S. crude futures came under pressure
after governmemnt data showed crude stockpiles rose 2.6 million
barrels last week, as refiners kept rebuilding stocks that
dropped sharply toward the end of last year for tax-trimming
purposes. []
Adding pressure, crude stocks stored at the key storage hub
at Cushing, Oklahoma, the delivery point for crude oil futures
traded on the New York Mercantile Exchange surged 667,000
barrels to a record 38.33 million barrels.
ICE Brent for March delivery <LCOH1> fell 21 cents to
$101.53 a barrel. In earlier trade they had risen, briefly
touching $102.36, the highest price for a front-month contract
since September 2008.
U.S. March crude <CLH1> dipped 44 cents to $90.33.
Even so, Brent crude's premium against the U.S. crude
benchmark, West Texas Intermediate, remained wide at over $11 a
barrel, after closing just below that level on Tuesday, on
account of the bloated stocks in Cushing, <CL-LCO1=R>
"There is trading volatility with the bearish data weighing
on prices. And some Egypt crisis fatigue as well," said John
Kilduff, partner at Again Capital LLC in New York.
The dollar rebounded against the euro as the tense
situation in Egypt and signs of dissension over a euro zone
rescue plan prompted investors to embrace the greenback.
[]
A stronger dollar usually pressure oil prices as a pricier
greenback makes oil expensive for buyers using other
currencies.
"We're looking at the dollar extending its move up, helping
push crude back off its highs, and the bearish EIA data didn't
help (bulls) either," said Chris Dillman, analyst at Tradition
Energy in Stamford, Connecticut.
TENSION IN EGYPT
Egyptian President Hosni Mubarak has said he will surrender
power in September, angering protesters who sought an immediate
end to his 30-year rule. In sporadic skirmishes, Mubarak's
supporters attacked protesters, further muddling the already
explosive situation.
The United States, France, Germany and Turkey have urged
Mabarak to carry out a speedy transition, but worry that
tensions could spread to other authoritarian Arab countries.
Analysts expected oil markets to head still higher unless
the unrest in Eygpt subsides.
Credit Suisse analysts said price risks would remain
"skewed to the upside" as long as geopolitical tensions in
Egypt remained unresolved: "We expect oil prices to ease once
tensions fade due to ample global inventories."
So far, the unrest in Egypt has not affected traffic on the
the Suez Canal or flows on 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 of crude and oil products
in 2009, the latest datga available.
At the moment, there are fears that the citizen uprising 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.
(Additional reporting by Robert Gibbons in New York;
Christopher Johnson in London; Alejandro Barbajosa in
Singapore; Editing by David Gregorio)
