* Oil rises on Brazil oil workers strike
* Concerns of slowing demand due to record prices
* Bush lifts exploration ban on U.S. Outer Continental
Shelf
(Updates with settlement prices)
NEW YORK, July 14 (Reuters) - Oil rose slightly on Monday as
supply concerns in Brazil in the midst of an energy workers
strike outweighed ongoing worries that high fuel costs are
dragging down consumer nation demand.
U.S. crude <CLc1> settled up 10 cents to $145.18 a barrel,
after hitting a record above $147 in intraday activity on
Friday. London Brent crude <LCOc1> settled 57 cents lower at
$143.92 a barrel.
Support came as oil workers at Brazil's Petrobras launched a
five-day strike that cut output by 136,000 barrels per day
(bpd), about 7 percent of its production.
"The Petrobras strike is a short-term issue and not really a
big factor," said Tim Evans, energy analyst for Citi Futures
Perspective in New York.
Oil prices have risen more than seven-fold since 2002 on
surging demand from emerging nations like China and rising cash
inflows into commodities from investors seeking to hedge against
inflation and the weak dollar.
But the rising fuel costs have sparked global protests and
cut U.S. fuel demand during the typical peak summer gasoline
season.
"The main bearish factors have to do with a lack of demand
falling away right now. At these prices we are going to see
demand continue to drop and drop," said Peter Beutel, president
of Cameron Hanover.
"I think we're seeing signs of structural conservation that
is going to be with us for a while."
U.S. President George W. Bush lifted a presidential ban on
offshore drilling on Monday to boost domestic supplies and
combat soaring energy prices. []
Analysts said the plan would take a decade to bring real
results and offer little short-term relief. A congressional ban
on offshore drilling also remains in place, and Senate
Democratic Leader Harry Reid later on Monday rejected Bush's
call to lift the moratorium.
Stocks fell on Monday as renewed fears about fallout from
the credit crisis overshadowed initial enthusiasm over a rescue
plan for U.S. mortgage giants Fannie Mae and Freddie Mac.
The dollar firmed early on news of the rescue plan, however,
adding to the downward pressure on oil prices. []
"The dollar bounced and pushed crude down $2 early," said
Gene McGillian, analyst at Tradition Energy.
Oil has jumped 50 percent this year alone, extending a
six-year rally.
Traders remained concerned about possible supply disruptions
from OPEC member Nigeria -- where militants in the oil producing
region abandoned a cease-fire -- and from Iran amid tensions
with Israel and the West over Tehran's nuclear program.
Markets were also eyeing a low-pressure system about 1,300
miles east of the Lesser Antilles that could develop into a
tropical depression. []
A Reuters poll ahead of weekly U.S. government inventory
data forecast that U.S. crude stocks fell 1.2 million barrels
last week. U.S. gasoline inventories were seen down 300,000
barrels while distillate stocks were seen up 1.9 million
barrels.
(Reporting by Matthew Robinson, Gene Ramos, Robert Gibbons in
New York; Santosh Menon in London, Fayen Wong in Perth, editing
by Matthew Lewis)
