* Oil eases to near $144
* U.S. dollar surrenders early gains, stocks fall
* Bush to lift exploratiion ban on Outer Continental Shelf
(Updates prices)
By Santosh Menon
LONDON, July 14 (Reuters) - Oil eased to near $144 a barrel
on Monday as a U.S. plan to restore confidence in its financial
sector shored up the dollar and financial markets, with worries
about threats to supplies providing support.
The U.S. government at the weekend unveiled an emergency
plan to shore up embattled mortgage giants Fannie Mae and
Freddie Mac -- which control $5 trillion in debt -- easing
concerns about the wider economy and helping the dollar rally
from a near-record low against the euro.
The dollar later surrendered some of its gains after U.S.
stocks eased, with Fannie Mae and Freddie Mac paring their
advance on concerns the government's rescue plan may not be
enough. []
U.S. light crude for August delivery <CLc1> was 97 cents
down at $144.11 a barrel by 1542 GMT. London Brent crude <LCOc1>
was $1.18 cents down at $143.31.
"Once again we are back into those phases where the economic
news is going to lead it. The market has decided that supply is
going to be tight," said Simon Wardell of Global Insight.
Gerard Burg, a commodities analyst from the National
Australian Bank in Melbourne, said: "Oil's fall... is generally
due to gains in the U.S. dollar as well as some profit-taking in
the market."
U.S. crude hit a record high of $147.27 last Friday, as
concerns about threats to global oil supplies and a
deteriorating U.S. economic landscape hit financial markets,
driving investors to seek the relative safety of commodities.
Oil initially fell by more than $2.50 on Monday, but pared
those losses as Brazilian oil workers began a five-day strike,
once again highlighting supply fears in a tight market.
Traders were also on the watch for any news of supply
disruptions from Nigeria, where militants abandoned a ceasefire,
and from Iran amid tensions with Israel and the west.
In news seen as positive for long term supplies, the White
House said President George W. Bush planned to lift a ban on oil
exploration in the Outer Continental Shelf on Monday as part of
an effort to ease record high oil prices. []
SUPPLY FEARS
Oil prices have risen sevenfold since 2002 on surging demand
from China and other emerging markets, and have jumped 50
percent this year alone, battering the economies of consumer
nations already hit hard by the global credit crunch.
Supply concerns again came to the fore as Brazilian oil
workers at the national energy giant Petrobas <PETR4.SA><PBR.N>
began a planned five-day strike at the country's key fields in
the Campos basin at midnight on Sunday. []
Campos accounts for more than 80 percent of Brazil's crude
output of 1.8 million barrels per day. Petrobras said the strike
would cut its output by 300,000 barrels per day.
"There are a lot more upside risks to prices in the short
term, especially tension between Iran and Israel," said Ryuichi
Sato, an analyst at Mizuho Corporate Bank in Tokyo.
Missile tests last week by Iran have left the oil markets
worried about a potential supply disruption from the world's No.
4 exporter.
(Additional reporting by Fayen Wong; Editing by James
Jukwey)
