* Yemen opposition call for protest, Gaddafi holds ground
* Rocket from Gaza strikes deep in Israel
* Global markets watch Portugal austerity vote
* Coming Up: EIA U.S. weekly oil inventory report 1430 GMT
(Updates throughout with details)
By Ikuko Kurahone
LONDON, March 23 (Reuters) - Oil rose slightly on Wednesday,
reversing earlier losses, as unrest flared in the Middle East
and North Africa, a vital part of global energy supply.
Brent crude futures <LCOc1> rose 29 cents to $115.99
a barrel at 1130 GMT, having fallen to as low as $115.21. Prices
have risen in four out of the past five sessions but dropped
from the near $120 hit in late February.
U.S. crude futures <CLc1> gained 40 cents to $105.37.
Volumes for both contracts were moderate as high volatility
in recent weeks on the oil market has sent some investors to the
sidelines and others into safer havens. []
In Yemen, a small oil and gas producer, opposition groups
called on protesters to march on President Ali Abdullah Saleh's
Sanaa palace on Friday to demand he step down, hoping to end a
crisis his allies abroad fear will benefit Islamic militants.
"Yemen is a very hot topic now. It is not that important to
the oil market but unrest in the region gives enough
psychological support to prices," Andy Sommer, energy market
analyst with EGL, said.
Seven weeks of street protests against Saleh's 32-year rule
of the impoverished Arabian Peninsula state has raised alarm in
Western capitals at the prospect of a country where al Qaeda has
entrenched itself falling apart. []
Its neighbour Saudi Arabia is the world's top oil exporter
and the only OPEC member nation with enough spare capacity to
compensate for supply disruptions elsewhere.
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Libya graphics http://link.reuters.com/neg68r
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The civil unrest has spread across oil rich North Africa and
the Middle East to such countries as Tunisia, Egypt and Bahrain
and has shut in the bulk of Libya's oil output.
"While this transition is going on, it can only threaten oil
supplies and increase uncertainty - both things that will keep
oil prices strong," said Christopher Bellew at Bache
Commodities.
Western warplanes silenced Muammar Gaddafi's artillery and
tanks besieging rebel-held Misrata in western Libya on Wednesday
after a U.S. admiral warned his armour was the next target.
Breathing defiance, Gaddafi earlier said Western powers who
carried out a fourth night of air strikes on Libya to protect
civilians under a U.N. mandate were "a bunch of fascists who
will end up in the dustbin of history." []
Buried by Yemen and Libya, protests in Syria continued and
conflicts in the Gaza strip were escalating. []
Palestinian rockets struck two cities deep in Israel on
Wednesday, wounding a resident and prompting a deputy to Prime
Minister Benjamin Netanyahu to call for a new offensive against
the Hamas-ruled Gaza Strip. []
In West African oil producer Nigeria, some violence has been
reported ahead of presidential election in April.[]
Some lid on prices came from the United States, the world's
second-largest energy consumer. Analysts expected government
data to show a 1.6 million barrel increase in the week to March
18 when it is released later in the day. []
Global markets were also watching a key vote on austerity
measures in Portugal that could see the country's government
brought down. [] []
Also of concern is the impact of Japan's earthquake and
tsunami. The cost of the damage could top $300 billion, making
them out the world's costliest natural disaster. []
FTSEurofirst 300 <> index of top European shares were
little changed from Tuesday's close, after opening lower. []
The euro dipped broadly against other currencies. []
(Additional reporting by Alejandro Barbajosa; editing by James
Jukwey)
