* U.S. crude gains 6 cents; Brent slips 5 cents
* Euro scales fresh 16-month peak against dollar early in
Asia
* Brent oil may rise towards $126.48/bbl -technicals
[]
* Coming up: FOMC rate decision; 1630 GMT
By Manash Goswami
SINGAPORE, April 27 (Reuters) - Crude futures fell on
Wednesday as investors awaited the outcome of a meeting of the
U.S. Federal Reserve for details of the bank's assessment of the
economy and its monetary policy stance, while a weak dollar
provided support.
NYMEX crude for June delivery <CLc1> fell 10 cents to
$112.11 a barrel by 0254 GMT, after settling at $112.21. The
price seesawed in Tuesday's trade between a low of $111.12 and a
peak of $112.64. Brent <LCOc1> dropped 19 cents to $123.95 a
barrel.
A slide in the dollar near 2-1/2-year lows has also helped
silver prices rebound from the previous session's sharp falls,
and gold edge higher. The greenback has declined as investors
bet the Fed will keep its easy policy, helping support
dollar-denominated oil that has attracted investment as a hedge
against inflation.
"Investors are being very cautious ahead of the Fed meeting
and prices are drawing support from a weak dollar," said Serene
Lim, an analyst at ANZ. "Oil will continue to trade in this
range till the outcome of the Fed meeting is known at least."
Lim also expects oil to trade around this range in coming
days, largely supported by a weak dollar, as the Fed is expected
to continue with its accommodative stance, while any indication
of a change may boost the dollar and cap oil prices.
"Any signs of a tightening bias could renew interest in the
dollar and that may limit gains in oil prices," Lim said.
Technicals show Brent may break a resistance at $124.81 per
barrel and rise towards $126.48, while U.S. oil <CLc1> will be
technically neutral before it escapes from a consolidation range
of $111.08-$113.48 per barrel, according to Reuters market
analyst Wang Tao.
The world's top consumers are starting to show signs of
being hurt by rising oil prices. U.S. President Barack Obama on
Tuesday urged world producers to lift crude output as he sought
to deflect public anger over high gasoline prices. U.S. motor
fuel prices have become a heated political issue after pushing
toward $4 a gallon. []
China grappled with a strike by truckers against the steep
increases in gasoline and diesel prices. []
Standard and Poor's on Wednesday threatened to cut Japan's
sovereign rating, warning that the huge cost from last month's
devastating earthquake will hurt the world's third-largest oil
consumer's already weak public finances without tax hikes.
[]
MIDDLE EAST UNREST
Violence in the Middle East has spread and intensified in
recent weeks, spilling over to Syria and Yemen, helping put a
floor under oil prices, analysts said.
"The unrest has been largely factored in," ANZ's Lim said.
"Unless anything dramatic happens, they will continue to support
oil prices."
Syrian President Bashar al-Assad poured troops into a suburb
of the capital overnight while his tanks pounded Deraa to crush
resistance in the southern city where the revolt against his
autocratic rule began on March 18. []
The military deadlock in Libya has exposed growing
international rifts, highlighting the possibility of unrest in
Libya being dragged out. Critics of NATO bombing called it
another case of the West trying to overthrow a regime by
stretching the terms of a U.N. resolution.
British and U.S. officials met on Tuesday to discuss how to
step up military pressure on Gaddafi, as the Libyan leader's
army fought fierce clashes with rebels in besieged Misrata.
[]
(Editing by Clarence Fernandez)
