UPDATE 2-Oil near $49 on Russia gas row, Mideast tension

                                
 * Israel deepens incursion into Gaza Strip
                                
 * Signs of supply disruptions emerge from Russian gas row
                                
 * Kuwait to deepen oil supply curbs to Asia
                                
 * U.S. weekly inventory data to show higher crude stocks
  
                                
 (Updates prices, pvs SINGAPORE)
                                
 By Alex Lawler
                                
 LONDON, Jan 6 (Reuters) - Oil held near $49 a barrel on
Tuesday as Israel's deepening incursion into Gaza and a dispute
between Russia and Ukraine over natural gas heightened concern
about supply disruptions.
                                
 Tension in the Middle East, supply cuts by OPEC oil
exporters and the row between Russia and Ukraine have helped to
boost crude prices by about 50 percent from a low of $32.40 on
Dec. 19.
                                
 "Oil prices continue to be supported by political issues,
whether they be gas or Gaza related," Rob Laughlin, broker at MF
Global, said.
 U.S. crude <CLc1> for February delivery was down 1 cent at
$48.80 by 0926 GMT, after hitting a three-week high of $49.28 on
Monday. London Brent <LCOc1> was up 29 cents at $49.91.
                                
 On Tuesday, Israeli forces pressed closer and into cities in
the Gaza Strip despite new international calls for a ceasefire
in an 11-day-old conflict in which hundreds of Palestinians have
been killed.
                                
 The violence does not directly threaten any oil supplies,
but unrest in the Middle East can bolster prices because
countries in the region pump about a third of the world's oil.
                                
 All supplies of Russian gas via Ukraine to Bulgaria, Turkey,
Greece and Macedonia were halted on Tuesday due to a dispute
between Moscow and Kiev over gas prices, officials in Sofia
said.
                                
 The gas row, which mirrors a similar dispute three years ago
that also disrupted supplies, is likely to raise questions in
Europe about Russia's reliability as a gas supplier. Russia is
also a major oil exporter.
                                
 Oil has fallen steeply from a record high of $147.27 reached
in July as the global downturn eroded demand. Despite the best
efforts of policymakers so far, economic indicators have been
largely dire.
                                
 Toyota Motor Corp said it will shut all its factories in
Japan for 11 days and Britain's Nationwide Building Society said
house prices in the world's fifth biggest economy fell another
2.5 percent in December.
                                
 Fuel inventories are rising as demand slows. A report from
the U.S. Energy Information Administration due on Wednesday is
forecast to show that supplies of crude, distillates and
gasoline increased last week [EIA/S].
                                
 The Organization of the Petroleum Exporting Countries has
cut output three times since September in a bid to halt the
price decline. The latest reduction, of 2.2 million barrels per
day from Jan. 1, is its biggest ever cutback.
                                
 Kuwait will deepen oil supply curbs to its main customers in
Asia later this month, refiner sources said on Tuesday, a
measure that adds to evidence OPEC members are tightening the
taps.
 (Reporting by Alex Lawler and Jennifer Tan; Editing by Sue
Thomas)