* Mideast unrest, Israel-Iran tension boost Brent
* Reuters monthly oil price poll sees fall in Brent soon
* U.S. January CPI, jobless claims slightly above forecasts
(Updates prices, detail)
By Anna Yukhananov
LONDON, Feb 17 (Reuters) - North Sea Brent crude oil
steadied around $104 per barrel on Thursday, near a
two-and-a-half-year high, as unrest in the Middle East and
Israel-Iran tension stoked fears of a disruption of oil flows.
Bahrain police stormed a square in Manama, killing at least
three people as protests in the Middle East and North Africa
gathered pace, inspired by revolts in Tunisia and Egypt.
[]
Clashes were reported in tightly controlled oil producer
Libya, sandwiched between Egypt and Tunisia, while at least 40
were wounded in Yemen in the seventh day of demonstrations
against the president's 32-year rule. []
[]
The dollar earlier hit a one-week low against a basket of
currencies on worries over rising Middle East tension. []
"All in all, the pace of change sweeping the region is truly
mind-boggling, and we find it unlikely oil prices will settle
any time soon as long as this kind of upheaval continues to
spread," said Edward Meir, senior commodity analyst at brokers
MF Global.
Brent crude for April delivery <LCOc1> fell 8 cents to
$103.70 by 1508 GMT versus $103.78 on Wednesday, its highest
close since September 2008. U.S. crude for March delivery <CLc1>
rose 13 cents to $85.12 a barrel.
A Reuters poll of analysts and banks suggested on Thursday
that Brent would drop later this year as the risk premium from
unrest in the Middle East ebbs. []
"The current price is unsustainable," said Carsten Fritsch,
commodity analyst at Commerzbank in Frankfurt. "Tension in the
Middle East should calm down at some point, whereas (North Sea)
output should normalise," he said.
The spread between Brent and U.S. crude <CL-LCO1=R> held
just below $16 per barrel after hitting a record of $16.31 a
barrel on Wednesday.
The Credit Suisse global research team said political
tensions would continue to lift global oil prices.
"However, we see risks for Brent prices to retrace below
$100 if the geopolitical issues are resolved," they said.
Gulf Arab foreign ministers will meet on Thursday evening to
discuss unrest in Bahrain. []
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Interactive graphic on Middle East unrest:
http://r.reuters.com/nym77r
Graphic of asset returns in 2011:
http://r.reuters.com/suc97r
Link to Reuters Insider news bulletin focusing on Reuters
oil price poll
http://link.reuters.com/xet97r
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SUEZ
Tensions between Israel and Iran also kept pressure on
markets.
Iranian state TV said on Thursday that two Iranian warships
were due to pass through the Suez Canal, the first such passage
by the Islamic Republic's navy since Iran's 1979 revolution.
[]
Israeli Foreign Minister Avigdor Lieberman said Iran's move
through the canal en route to Syria would be a provocation.
Suez Canal officials said on Thursday they had no
notification so far that the Egyptian government would allow the
two Iranian naval ships to cross the waterway. []
U.S. crude pared earlier losses after U.S. data showed
prices had risen more than expected in the world's biggest oil
consumer, though jobless claims also rose more than forecast.
January core consumer prices rose 0.2 percent, their
quickest pace in more than a year and above expectations for a
0.1 percent gain, though the increase was not enough to suggest
a troubling build-up in inflation pressures. []
Other data showed U.S. claims for unemployment benefits rose
more than expected last week to 410,000, though the data still
pointed at gradual labour market recovery.
(Additional reporting by Christopher Johnson and Jennifer Tan;
editing by Jane Baird)
