* Revolt, protests threaten more supplies
* China manufacturing growth at 6-mth low
* U.S. crude stockpiles likely rose for 7th straight week
* IMF says extended high oil prices to hit global growth
* Technicals show Brent to consolidate
(Updates throughout)
By Florence Tan
SINGAPORE, March 1 (Reuters) - Brent crude rose above $112 a
barrel on Tuesday as continued unrest in the Middle East and
North Africa threatened to further reduce crude supplies even as
Saudi Arabia ramped up output to cover disruption to Libyan
exports.
Gains were capped as February manufacturing growth in No. 2
oil importer China slowed to a six-month low. In top consumer
the U.S., crude oil inventories likely increased for the seventh
consecutive week last week on higher imports.
Brent futures for April rose 41 cents to $112.21 a
barrel by 0736 GMT. The contract gained over 10 percent in
February, its biggest monthly percentage rise since May 2009.
U.S. crude rose 33 cents to $97.30 a barrel.
Both benchmarks surged to their highest in 2-1/2 years last
week as the revolt in Libya cut supply and spurred fears that
tensions could spread to other oil producers in the region.
Demonstrators blocked roads into Oman's main oil product
port on Monday, although exports were unaffected.
"There's a very large fear premium in oil prices due to the
geopolitical situation," said Ben Le Brun, markets analyst at
CMC Markets.
"The potential is there and the risk is very high if it (the
unrest) spreads to countries such as Saudi Arabia", he said,
adding that in that scenario prices could "rocket up."
Crude oil shipments from Libya are at a virtual standstill
as reduced output and bad weather hamper exports from the
world's 12th-largest producer, shipping sources said.
Bank of America Merrill Lynch said Libya's oil
infrastructure on the eastern side of the country could be prone
to attacks, "creating the risk of a prolonged output loss."
The bank added that the oil market's ability to deal with
further unrest in the Middle East was limited. Still, a Saudi
source said on Monday that the kingdom has another 3.5 million
barrels per day (bpd) of spare capacity, even after it raised
output to around 9 million bpd to plug the gap left by
Libya.
OIL SPIKES TO HIT GROWTH
The IMF has warned that global economic growth could suffer
if the price of oil stays at its current high level for an
extended period.
"A steep rise in oil prices that is caused by a supply loss
is likely to be more damaging than one that is driven by robust
demand," JPMorgan analysts led by Lawrence Eagles said in a Feb.
28 note.
In China, manufacturing growth slowed in February to a
six-month low, according to an official survey, as the
government's sustained campaign to tame inflation weighed on
industrial activity.
A slowdown was expected, but China still has strong demand
for crude and products to feed its expansion, said Yuichiro
Sakaki, a Tokyo-based trader at Mizuho Securities.
China is targeting 7 percent per year annual economic growth
from 2011-2015, down from the average growth of 11.2 percent in
the last five year period.
In the U.S., crude stocks are expected to rise 1.2 million
barrels last week while inventories for oil products are likely
to fall, a preliminary Reuters poll showed.
(Editing by Ed Lane)
