* Renewed anger expected across Mideast, North Africa
* Iran-Israel tensions continue to seethe
* Mixed US economic data provides few trading cues
* For a 24-hour technical outlook on oil:
* http://graphics.thomsonreuters.com/WT/20111802085125.jpg
(Recasts with Brent's rise, updated prices)
By Jennifer Tan
SINGAPORE, Feb 18 (Reuters) - Brent crude oil rose towards
$103 a barrel on Friday, as unrest spreading across the Middle
East fanned fears of a supply disruption in the major
oil-producing region.
U.S. crude fell, but held above $86 a barrel, after jumping
more than $1.00 the previous day.
Parts of the Middle East and Arab North Africa could see
renewed public anger towards their governments on Friday, with
the focus on Bahrain and Libya as protesters bury people killed
in recent clashes.
In Libya's eastern city of Benghazi early on Friday,
thousands of anti-government protesters crowded on to the
streets, a day after "Day of Rage" demonstrations led to
skirmishes with security forces in which more than 20 people may
have been killed.
Tension between Israel and Iran continued to seethe amidst
uncertainty about Iran's plans to send navy ships through the
Suez Canal, in a move that Israel has called a "provocation".
"Short-term geopolitical nervousness will continue to
underpin Brent prices, but in terms of fundamentals, support
will come from the gradually recovering U.S. economy and the
ongoing momentum in China," said David Cohen, director at Action
Economics in Singapore.
"There doesn't seem to be any dramatic development in terms
of the unrest in the Middle East, so prices might take a
short-term breather," he added.
Brent crude for April delivery rose 14 cents to
$102.73 a barrel by 0725 GMT, after settling $1.19 lower at
$102.59. Wednesday's close of $103.78 was its highest since
September 2008.
U.S. crude for March delivery sank 27 cents to $86.09
a barrel, after settling 1.6 percent higher at $86.36, its
biggest gain in two weeks. Short-covering ahead of the
contract's expiry on Tuesday helped to pull prices higher.
The spread between the two grades <CL-LCO1=R> eased to just
under $14, after hitting a fresh record of $16.31 a barrel two
days ago.
But Brent oil prices are forecast to drop later this year as
analysts expect the risk premium for unrest in the Middle East
to ebb, a Reuters poll showed.
U.S. economic data released on Thursday was mixed,
signalling the economy was struggling to speed up recovery, but
the reports provided few trading cues.
January core consumer prices rose at their quickest pace in
more than a year and above expectations.
But U.S. initial jobless benefit claims rose more than
expected, while the Philadelphia Federal Reserve Bank said its
business activity index increased in February to its highest
reading since January 2004.
The dollar was steady to firmer on Friday, after weakening
overnight as the Swiss franc benefited from safe-haven appeal
following tensions in the Middle East.
The dollar index , which tracks the greenback's
performance against a basket of major currencies, was up 0.1
percent at 78.024.
Asian stocks are set to finish their best week in two months
on Friday as fading concerns over inflation encouraged investors
to hunt for value in beaten down markets within the region.
(Editing by Clarence Fernandez)
