UPDATE 1-Oil eased below $118; focus on supply disruptions

                                
 (Adds price updates)
                                
 By Luke Pachymuthu
                                
 SINGAPORE, April 23 (Reuters) - Oil eased under $118 on
Wednesday, but stayed on the boil due to a weakening dollar,
supply disruptions in Nigeria and fears that a refinery strike
in Scotland could hit production in the North Sea.
                                
 U.S. crude <CLc1> for June eased 18 cents to $117.89 a
barrel at 0743 GMT, after the May contract expired on Tuesday
at $119.37, briefly hitting an all-time peak of $119.90.
                                
 London Brent crude <LCOc1> fell 21 cents to $115.74, after
touching an intraday record high of $116.75 the previous
session.
                                
 Oil's strong rally in recent weeks has seen prices rise
more than five-fold since 2002, as booming demand from emerging
markets such as China coincided with long-term supply
constraints.
                                
 China, the world's second-largest consumer, helped to
further spur the price of oil, after new government data showed
demand rose 8 percent in March from a year earlier, the
quickest pace in 19 months as refiners boosted imports ahead of
the Olympics. [ID:nPEK292273]
                                
 "We are seeing no evidence of demand destruction even as
prices keep rising," said Jim Ritterbusch, president of
Ritterbusch and Associates in Galena, Illinois.
                                
 "OPEC is still not willing too pump more oil onto the
market, and to add to the situation, there is no significant
production increase beyond OPEC," he added.
                                
 A softer dollar, which fell to new lows against the euro on
Tuesday, has also helped to boost dollar-denominated
commodities such as oil and attracted speculative inflows from
hedge funds. [ID:nN22296501]
                                
 Pipeline attacks in OPEC member Nigeria last week shut
169,000 barrels per day (bpd) of Bonny Light production,
forcing Royal Dutch Shell Plc <RDSa.L> to declare force majeure
on crude exports. [ID:nL21117737]
                                
 Nigerian rebels also attacked two Shell oil pipelines in
the Niger Delta on Monday. [ID:n21129451]
                                
 Management and union officials are in talks to avoid a
planned two-day strike at Scotland's Grangemouth refinery,
which could lead to shortages of auto fuel, especially diesel.
North Sea oil supplies could also be disrupted by a plant
shutdown, as the pipeline bringing North Sea Forties crude to
Britain ends at the refinery, refinery operator Ineos said.
[ID:nL22601976]
                                
 Oil producers in Rome for the International Energy Forum
said they could do nothing to halt oil's rally and the world
might have to live with even higher prices if it wants supplies
for the future. [ID:nL22840262]
                                
 President George W. Bush on Tuesday said he was concerned
about record high crude oil and gasoline prices, and said the
United States must tap an Alaskan wildlife refuge to boost
supply. [ID:nN22361581]
                                
 Gasoline stocks in the United States were projected to have
dropped for the sixth straight week on lower refinery
production due to unplanned shutdowns, maintenance and run
cuts, said  analysts polled ahead of the release of government
data on Wednesday.
 (Editing by Ramthan Hussain)