* Brent rebounds from 3-wk low to touch $110.54 a barrel
* Violent clashes continue in Bahrain, Yemen
* Japan crisis solutions seen as last-ditch efforts
* API crude stocks up less than expected, EIA at 1430 GMT
(Adds information on Bahrain, Yemen, quote, updates prices)
By Jessica Donati
LONDON, March 16 (Reuters) - Brent crude rose by over $2 to
top $110.50 a barrel on Wednesday, rebounding from a three-week
low near the start of the session as clashes in the Middle East
spread and the Japanese nuclear crisis worsened.
A crackdown on protesters in Bahrain resulting in the deaths
of four people, according to hospital sources, and violent
clashes in Yemen [] renewed fears unrest in the
Middle East could spread across oil-producing countries.
Brent for April <LCOc1> was up $1.53 at $110.05 a barrel by
1121 GMT, rebounding from a near three-week low of $107.35. U.S.
crude futures were up $1.37 at $98.55 a barrel around the same
time.
"Saudi is not happy about what is going on in Bahrain, where
a similar set-up involves conflict between ruling Sunnis and
majority Shi'ites ... The situation in Bahrain is potentially
destabilizing for Saudi Arabia," said David Morrison, a
strategist at GFT.
The movement of Saudi troops into the tiny kingdom has been
taken as a mark of concern that Bahraini protests could inspire
Saudi Arabia's own Shi'ite minority. []
The island state lies less than 100 kilometres from the hub
of the Saudi oil industry around Dhahran, including the world's
largest oil fields, terminals and processing facilities
Saudi protests have mostly taken place in the Eastern
Province, where the oil industry is based and which is home to
most of the Shi'ites that make up around 15 percent of the
population in the kingdom. []
JAPAN EYED
Oil prices have yet to benefit from an expected increase in
Japanese demand for gasoil and fuel oil for power generation to
replace some of the nuclear capacity lost following Friday's
earthquake and tsunami. []
Reconstruction efforts and the increased need for
non-nuclear fuel is forecast to boost Japanese oil burning by
around 500,000 barrels per day, according to a report published
by the JBC Energy Research Centre.
But oil shipments to Japan have not so far been
significantly affected, a top shipping industry group said on
Wednesday. []
"It remains unclear whether the earthquake in Japan will
ultimately result in an increase or decrease in oil demand,"
said Christopher Bellew, an oil trader at Bache Commodities in
London.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
SNAP ANALYSIS-Japan nuclear crisis []
Economists' estimate of Japan quake impact []
Charting Japan nuclear crisis: http://r.reuters.com/sec58r
Global nuclear incident map: http://r.reuters.com/wym58r
Picture, graphic packages: http://r.reuters.com/wyb58r
Refinery, utilities and smelter shutdowns []
Insider video: http://r.reuters.com/mym58r
LIVE: http://live.reuters.com/uk/Event/Japan_earthquake2
Winds in Japan on Tuesday http://link.reuters.com/bym58r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
US STOCKBUILD SLOWS
U.S. crude oil futures were supported by a
smaller-than-expected 91,000 barrel stockbuild at the Cushing
storage hub, data released by the American Petroleum Institute
(API) showed late on Tuesday. []
Analysts polled by Reuters had on average expected a
1.8-million-barrel build. []
A U.S. Energy Information Administration report due at 1430
GMT on Wednesday is forecast to show higher crude inventories on
increased imports, while gasoline stocks are expected to fall
1.8 million barrels. Distillate supplies, which include heating
oil and diesel, are expected to have dropped 1.3 million barrels
according to the poll. []
(Additional reporting by Alejandro Barbajosa; editing by
Jason Neely and Jane Baird)
