* Egypt port disruptions, Jordan lift Brent above $102
* Dollar falls to two-month lows against the euro
* Coming up: API oil data at 4:30 p.m. EST, Tuesday
(Recasts, updates prices and market activity)
By Robert Gibbons
NEW YORK, Feb 1 (Reuters) - Brent oil prices rose on
Tuesday, pushing above $102 a barrel as disruptions at Egyptian
ports and Jordan's government shake up kept concerns about
unrest in the region and the potential for oil supply
interruptions in focus.
U.S. crude prices fell in choppy trading ahead of weekly
reports expected to show domestic crude inventories rose last
week and on the perception that the Brent market was more
vulnerable to any immediate supply disruption.
The U.S. price slide left the benchmark West Texas
Intermediate's discount to Brent <CL-LCO1=R> at more than $10 a
barrel. It reached a near record above $12 last week.
The dollar's weakness supported dollar-denominated oil
prices, with the euro extending gains to reach a two-and-half
month high against the greenback, as risk appetites improved
after strong U.S. and euro zone manufacturing data. []
In London, ICE Brent crude for March <LCOc1> rose 73 cents
to settle at $101.74 a barrel, off its earlier $102.08 peak.
U.S. crude oil for March delivery <CLc1> fell $1.42 to
settle at $90.77 a barrel after soaring more than $6 in the
previous two sessions.
Shipping sources said there were major disruptions in
Egypt's Alexandria and Damietta ports due to staff shortages
and an absence of customs officials. []
Egypt control's two major oil transit points, the Suez
canal and the SUMED pipeline, that brings oil from the Red Sea
to the Mediterranean, have not been affected by the protests,
but the disruptions at the ports to the west highlighted the
potential for problems. []
At least 1 million Egyptians took to the Cairo streets to
protest, with other mass anti-government rallies being staged
in other key cities. []
King Abdullah of Jordan replaced his prime minister after
protests over food prices and poor living conditions, adding to
the concerns about the region. []
"Geopolitics is at the forefront of the sentiment at the
moment. And while we don't expect (oil) transit to be impacted,
the news of the port disruptions brings up the what-if?," said
Amrita Sen, oil analyst at Barclays.
The International Energy Agency said the oil market does
not face any emergency, but called on OPEC to remain "flexible"
in the event unrest affects supply. []
OPEC has refrained from boosting production and sees no
supply shortage. OPEC member Libya's top oil official told
Reuters the group does not need to meet to discuss oil policy
in February because the market is well supplied and
$100-per-barrel prices are justified. []
An OPEC delegate had said that cartel ministers will hold
talks on the sidelines of an energy conference in Saudi Arabia
on Feb. 22. Oil's price rally, along with the belief that
economic recovery and demand growth are improving, have led to
calls for OPEC to raise output.
U.S. CRUDE INVENTORIES ON THE RISE
U.S. prices also were feeling pressure from, "concerns
about high U.S. domestic inventories and the likelihood of
further builds in supplies," said Joe Possillico, broker at MF
Global in New York.
The industry group American Petroleum Institute will
release its inventory report at 4:30 p.m. EST (2130 GMT) on
Tuesday and most analysts expected crude stockpiles rose last
week. []
A Reuters analyst survey forecast crude stocks to be up 2.7
million barrels, with distillate stocks slipping 700,000
barrels and gasoline inventories rising 1.9 million barrels.
(Additional reporting by Gene Ramos in New York and Jessica
Bachman in London; Editing by Marguerita Choy)
