UPDATE 5-Brent rebounds on Bahrain, Japan nuclear crisis

                                
 * Brent rebounds from 3-wk to touch $110.54 a barrel
                                
 * Security forces attempt to clear Bahrain protesters
                                
 * Japan crisis solutions seen as last-ditch efforts
                                
 * API crude stocks up less than expected, EIA at 1430 GMT
                                
 
                                
 (Recasts, adds quote, updates prices)
                                
 By Jessica Donati
                                
 LONDON, March 16 (Reuters) - Brent crude by as much as $2 to
over $110.50 a barrel on Wednesday, rebounding from a three-week
low near the start of the session as clashes in the Middle East
continued and the Japanese nuclear crisis worsened.
                                
 Bahraini security forces cracked down on protesters on
Wednesday, firing teargas they cleared demonstrators from a
central roundabout that had become the symbol of an uprising by
the island's Shi'ite Muslim majority. [ID:nLDE72F02J]
                                
 In Japan, workers withdrew briefly from a stricken nuclear
power plant because of surging radiation levels, but efforts to
avert a catastrophic meltdown quickly resumed. Nuclear experts
said the solutions being proposed amounted to last-ditch efforts
to stem what could become one of the world's worst industrial
disasters.
                                
 Brent for April <LCOc1> was up $1.62 to $110.14 a barrel by
0905 GMT, rebounding from a near three-week low of $107.35. U.S.
crude futures were up $1.23 at $98.41 a barrel around the same
time.
                                
 "It remains unclear whether the earthquake in Japan will
ultimately result in an increase or decrease in oil demand,"
said Christopher Bellew, an oil trader at Bache Commodities in
London.
                                
 Oil prices have yet to benefit from an expected increase in
Japanese demand for gasoil and fuel oil for power generation to
replace some of the nuclear capacity lost following Friday's
earthquake and tsunami.
                                
 Oil shipments to Japan have not been significantly affected
by the earthquake and subsequent nuclear crisis, a top shipping
industry group said on Wednesday. [ID:nL3E7EG0F3]
                                
 Earlier, U.S. crude oil futures were supported by a
smaller-than-expected 91,000 barrel stockbuild at the Cushing
storage hub, data released by the American Petroleum Institute
(API) showed late on Tuesday. [API/S] 
                                
 Analysts polled by Reuters had, on average, expected a
1.8-million-barrel build. [ID:nN15277086] 
                                
 A U.S. Energy Information Administration report due at 1430
GMT on Wednesday is forecast to show higher crude inventories on
increased imports, while gasoline stocks are expected to fall
1.8 million barrels. Distillate supplies (which include heating
oil and diesel) are expected to have dropped 1.3 million barrels
according to the poll. [ID:nN15287595]
                                
 
                                
 ALL EYES ON BAHRAIN
                                
 Bahrain's king declared martial law on Tuesday as his
government struggled to quell an uprising by the island's
Shi'ite Muslim majority that has drawn in troops from fellow
Sunni-ruled neighbour Saudi Arabia. [ID:nLDE72E02N]
                                
 The island state lies less than 100 kilometres from the hub
of the Saudi oil industry around Dhahran, including the world's
largest oil fields, terminals and processing facilities.
                                
 "The Middle East tension that is coming from Bahrain is a
positive factor for the oil market," said Ken Hasegawa, a
commodity derivatives manager at Japan's Newedge brokerage.

  <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  SNAP ANALYSIS-Japan nuclear crisis         [ID:nL3E7EF03A]
  Economists' estimate of Japan quake impact [ID:nTOE72E01C]
  Charting Japan nuclear crisis: http://r.reuters.com/sec58r
  Global nuclear incident map:   http://r.reuters.com/wym58r   
  Picture, graphic packages:     http://r.reuters.com/wyb58r 
  Refinery, utilities and smelter shutdowns  [ID:nL3E7EE1HQ]
  Insider video:                 http://r.reuters.com/mym58r
  LIVE:   http://live.reuters.com/uk/Event/Japan_earthquake2
  Winds in Japan on Tuesday   http://link.reuters.com/bym58r  
  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
                                
 In Libya, Muammar Gaddafi's government forces pushed
eastwards towards the rebel stronghold of Benghazi and his
government predicted victory within days while world powers
debated imposing a no-fly zone to help stop him. [ID:nLDE72F00F]
                                
 Libya's oil output, normally about 1.6 million barrels per
day and down by at least two-thirds, will take some time to
return to normal, the head of the National Oil Corporation said
on Tuesday, because some installations have been damaged in
fighting between rebel and government forces. [ID:nLDE72E28H]
                                
(Additional reporting by Alejandro Barbajosa; editing by
Jason Neely)