* U.S. crude stockpiles likely rose for 7th straight week
* IMF says extended high oil prices to hit global growth
* China manufacturing growth at 6-month low
* Technicals show Brent to consolidate []
(Adds quotes, updates prices, previous SINGAPORE)
By Zaida Espana
LONDON, March 1 (Reuters) - Brent crude oil futures rose
above $112 a barrel on Tuesday, supported by worries that
continued unrest in the Middle East and North Africa could
threaten supplies even as Saudi Arabia ramped up output to cover
disruption to Libyan exports.
A slowdown in Chinese manufacturing growth in February kept
gains in check, the first sign that the recent monetary
tightening policy is bearing effect.
Brent futures for April <LCOc1> were 60 cents up at $112.40
a barrel by 0950 GMT. The contract gained over 10 percent in
February, its biggest monthly percentage rise since May 2009.
U.S. crude <CLc1> rose 27 cents to $97.24 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.
The uprising in Libya has cut its oil output by half, the
International Energy Agency said on Monday, but Saudi Arabia's
pledge to pump more helped to prevent a further surge in the
price of oil. [] []
In Oman, a small oil producer, demonstrators blocked the
road to the main port in the north of the country, although
exports were unaffected. []
"The oil price is currently a battle between a supply side
that is under threat from interruptions and a demand side that
is under threat from a cut back in global growth," broker PVM
said in a note on Tuesday. "The battle front keeps moving as one
or the other concern dominates."
"We remain nervous about oil price prospects here, as there
remains little visibility as to how developments are going to
unfold, not so much in Libya ... but elsewhere in the Middle
East, where as we noted earlier, protests seem to be gathering
momentum," MF Global analysts said.
Bank of America Merrill Lynch said the oil market's ability
to deal with further unrest in the Middle East was limited.
Still, a Saudi source said on Monday the kingdom had 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. []
Investors await the latest U.S. weekly crude inventories
data from industry group American Petroleum Institute at 1630
GMT. Economists polled by Reuters expect an increase in
stockpiles for the seventh consecutive week last week on higher
imports. []
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Unrest in Middle East, North Africa: []
Analysis of long-term impact on Libya oil []
China industry hits half-year trough []
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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. []
(Additional reporting by Florence Tan in Singapore; editing by
James Jukwey)
