* Saudi police dispersed Thursday protest, before "Day of
Rage"
* China's implied oil demand 2nd-highest on record in Feb
* China monetary tightening not over
* Coming Up: U.S. retail sales for February; 1330 GMT
By Alejandro Barbajosa
SINGAPORE, March 11 (Reuters) - Brent crude held above $115
on Friday, as investors awaited the monarchy's response to
planned protests in Saudi Arabia for hints on how the world's
top oil exporter would deal with discontent that has spread from
North Africa.
Saudi police fired in the air to disperse protesting
Shi'ites on Thursday, and three people were injured in the melee
on the eve of a "Day of Rage" called for on social media,
witnesses and activists said.
The clampdown was a sign the kingdom was serious about
enforcing a ban on protests called for Friday by Internet
activists emboldened by movements that toppled the leaders of
Egypt and Tunisia before spreading to Libya and the
Gulf.
"The threat of any political unrest in Saudi Arabia is
keeping prices stable," said Serene Lim, a Singapore-based oil
analyst at ANZ Bank. "Any violence could definitely see a surge
in prices."
ICE April Brent crude rose 9 cents to $115.52 at
0355 GMT. Prices pared losses on Thursday as the Saudi protests
were dispersed, to close down 51 cents. On the New York
Mercantile Exchange, U.S. crude for April delivery rose 3
cents to $102.73.
U.S. crude prices had tumbled to just above $100 early on
Thursday, after Spain's credit rating was cut, which revived
worries over euro zone credit, driving the dollar higher.
EYES ON CHINA DEMAND
But the unrest in the Middle East is taking precedence over
economic woes. Friday protests are also planned in other Gulf
countries such as Yemen, Kuwait and Bahrain, after the day's
religious prayers, inspired by upheavals in Tunisia and
Egypt.
The influence of Libya's conflict on the oil market would
probably diminish in coming days because traders had discounted
the loss production from what used to be the world's
12th-largest oil exporter, ANZ's Lim said.
"It's likely that Saudi Arabia will take centre stage," Lim
said. "It's a foregone conclusion that Libya is in a state of
civil war."
Libyan rebels have lost momentum and are not likely to
dislodge Muammar Gaddafi from power, top U.S. intelligence
officials said on Thursday as Washington backed further away
from military action.
U.S. President Barack Obama will hold a news conference on
Friday at 11:15 a.m. EST (1615 GMT) on issues including rising
energy prices, a White House spokesman said.
Japanese Economics Minister Kaoru Yosano said on Friday oil
price rises are likely to have a substantial negative impact on
global economy.
"The yen's rise in the past year has helped to reduce the
relative impact of higher oil prices on Japan but, generally
speaking, high crude oil prices have a substantial negative
impact on the global economy," Yosano told a news conference
after a cabinet meeting.
Euro zone leaders are set to agree a "competitiveness pact"
at a summit on Friday and will push Portugal to announce new
reforms to boost market confidence as they seek to draw a line
under the debt crisis.
Unrest in the Middle East is adding a fear premium to prompt
spot U.S. crude oil supplies although there appears no end to a
contango that has existed for over two years.
Rising oil prices seemed to have a limited effect on
consumption in China.
China's refineries processed crude at a record rate in
February, official data showed on Friday, as the world's
second-largest oil consumer churned out more fuel to power
irrigation work in drought-hit areas.
China's implied oil demand increased 10.3 percent from a
year earlier to 9.54 million barrel per day in February, the
second highest on record, Reuters calculations showed based on
official data on Friday.
Eyes will also be on the impact of China's fight against
inflation, with data published on Friday lending credence to the
view that it is more than midway through a sustained campaign of
monetary tightening launched nearly half a year
ago.
(Editing by Ramthan Hussain)
