* Japan Nikkei shares fall more than 6 percent
* Japan's refined oil products, gas demand likely to rise
* North Africa, Middle East unrests support
(Recast throughout, previous SINGAPORE)
By Ikuko Kurahone
LONDON, March 14 (Reuters) - Oil fell to two-week lows on
Monday, slipping nearly $3 at one point, as concerns over the
economic impact from Japan's catastrophic earthquake and tsunami
knocked global investor confidence.
ICE Brent crude <LCOc1> was trading $2.20 lower at $111.64 a
barrel by 0959 GMT, having struck $111.16, the lowest since Feb.
25. U.S. crude <CLc1> fell $2.06 to $99.10, after hitting an
intraday low of $98.55.
Oil demand from Japan, the world number three energy
consumer, was expected to fall in the short to medium term as
the country's economic activity was likely to be subdued
following devastation caused by the strongest quake on record
and the massive ensuing tsunami, analysts said.
Japan's Nikkei stock average <> fell more than 6
percent. Global commodities prices mostly fell.
"Japanese stocks fell sharply as the impact on the Japanese
economy from the massive earthquake on Friday is worrying. Asian
shares were dragged lower and the trend has been to avert risks,
including oil," analysts with Japan's Mizuho Corporate Bank said
in its commodities research note.
Prime Minister Naoto Kan on Sunday said the country was
facing the biggest disaster since the second world war. The
earthquake and tsumami on Friday devastated a large part of
northeast Japan, killing at least 1,000 people, with thousands
more missing. []
Nuclear power plants' coolant systems failed and two
explosions hit the Fukushima nuclear plant. Many nuclear plants
and oil refineries have been shut. Ports and other
infrastructure sustained severe damage.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Factbox on Japan quake tears through commodity, energy
sectors: []
SPECIAL REPORT-Can Japan find "New Deal"? []
Quake to hit Japan economy, lift debt []
Nuclear incident scale: http://r.reuters.com/cag58r
Map of reactors: http://r.reuters.com/dyf58r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Refined oil products and gas prices, however, were
outperforming crude oil prices due to an expected increase in
import demand in coming weeks and months from Japan to cover
lost oil refining and nuclear power generation capacity.
<NEWOILOIL> <NGc1> []
Construction shares were up in Asia as the northeast Japan
needs extensive reconstruction work.
Christopher Bellew with Bache Commodities said the unrest in
oil rich North Africa and the Middle East would continue to
provide support to oil prices.
In Libya, Muammar Gaddafi's troops battled rebel fighters
for control of the strategic oil town of Brega, while France was
stepping up efforts to persuade world powers to impose a no-fly
zone over Libya.
More than half of Libya's 1.6 million barrels per day oil
output has been shut in due to the unrest.
In Yemen, heavy gunfire was heard south of the capital on
Monday and soldiers deployed in force in Sanaa itself, with a
new wave of rallies reported across the country demanding that
President Ali Abdullah Saleh quit. []
(Reporting by Ikuko Kurahone in London, Alejandro Barbajosa in
Singapore; editing by Keiron Henderson)
