* Saudi troops enter Bahrain to protect govt buildings
* Japan Nikkei shares fall more than 6 percent on quake
* Japan's refined oil products, gas demand likely to rise
(Recast, updates prices)
By Ikuko Kurahone
LONDON, March 14 (Reuters) - Brent crude prices bounced back
up on Monday on continued unrest in oil rich North Africa and
the Middle East, after falling to two-week lows on concerns over
the economic impact from Japan's massive earthquake last week.
ICE Brent crude <LCOc1> was trading 13 cents up at $113.97 a
barrel by 1427 GMT, reversing a $3 drop to a two-week low of
$111.16 earlier in the day.
U.S. crude <CLc1> were 68 cents lower at $100.48, after
hitting an intraday low of $98.55.
Prices pushed off the lows after a report Saudi Arabia sent
troops into Bahrain on Monday to help put down weeks of protests
by the Shi'ite Muslim majority, a move opponents of the Sunni
ruling family there called a declaration of war. []
Bahrain, an island off the coast of Saudi Arabia, called in
forces from its Sunni neighbours to put down unrest by its
Shi'ite Muslim majority after protesters overwhelmed police and
blocked roads in a resurgence of mass protests seen last month.
Christopher Bellew with Bache Commodities said the unrest in
the region would continue to provide support to oil prices.
"With the continuing and arguably worsening unrest in the
Middle East, I would expect the oil market to move higher
again," he said.
Still, global markets remained under pressure due to the
catastrophe in Japan, where oil demand from the world number
three energy consumer, was expected to fall in the short to
medium term as economic activity stalls following the quake.
Japan's Nikkei stock average <> fell more than 6
percent, dragging global equities lower. Global commodities
prices mostly fell. [][]
Prime Minister Naoto Kan on Sunday said the country was
facing its biggest disaster since the second world war. The
earthquake and tsunami on Friday devastated a large part of
northeast Japan, killing at least 10,000 people. []
Nuclear power plants' coolant systems failed and two
explosions hit the Fukushima nuclear plant. Operator Tokyo
Electric Power Co <9501.T> was struggling to keep coolant water
in one reactor core.
Many other nuclear plants and oil refineries have been shut.
Ports and other infrastructure sustained severe damage.
REFINED OIL PRODUCTS
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 northeast Japan was
expected to need extensive reconstruction work.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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
President Ali Abdullah Saleh quit. []
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by James Jukwey)
