* Oil up on fighting between Georgia and Russia
* Shipments of oil and oil products from two Georgia ports
suspended, according to a report
* Repair at Baku-Tblisi-Ceyhan pipeline may take 1-2 weeks
or longer
(Updates prices, adds details, background)
By Fayen Wong
PERTH, Aug 11 (Reuters) - Crude oil rose towards $116 a
barrel on Monday, rebounding from the previous session's $5
decline on concern fighting between Russia and Georgia could
disrupt energy exports from the Caspian region.
U.S. light crude for September delivery <CLc1> was up 51
cents at $115.71 a barrel by 0026 GMT, after rising as much as
$1.19 earlier.
The contract had finished $4.8 lower at $115.20 a barrel on
Friday, before falling to $114.90 in post-settlement trade, the
lowest level since early May.
Oil has shed about $31, or 21 percent, since its peak of
over $147.27 struck on July 11 on concerns of a slowdown in
demand.
London Brent crude <LCOc1> rose 66 cents to $113.99 on
Monday.
"I think the military conflict in Georgia is the key factor
in pushing up oil prices this morning. So much has happened so
quickly since we first heard of Russia's attack last week,"
said David Moore, an analyst at the Commonwealth Bank of
Australia in Sydney.
"There is also some degree of a technical rebound after
oil's sharp fall on Friday."
The simmering conflict between Russia and its small, former
Soviet neighbour Georgia erupted late on Thursday when Georgia
sent forces into South Ossetia, a small pro-Russian province
which threw off Georgian rule in the 1990s.
The fighting has also suspended shipments of oil and oil
products from two of Georgia's ports, Azeri state energy firm
SOCAR said on Saturday [].
Although news of the Georgian conflict had first emerged on
Friday, oil prices had continued to fall as traders ignored the
attacks and focused on a rising dollar as well as expectations
of slowing global energy demand.
But analysts said oil prices were expected to remain
volatile with plenty of upside risks due to geopolitical
tensions in the Middle East which could potentially disrupt
supplies.
In Turkey, a pipeline blast at a crude pipeline last week
halted loadings of Azeri Light crude shipped to the Turkish
port of Ceyhan.
A fire was still burning at the Baku-Tblisi-Ceyhan pipeline
on Saturday and repairs may take one to two weeks or longer,
sources at Turkey's state-owned pipeline company Botas said
[].
BP <BP.L> has also cut output by at least 400,000 barrels a
day at the Azeri-Chirag Gunashli oilfields because of the fire.
[]
Iran, the world's fourth-largest crude exporter, will not
back down on its nuclear stance despite the threat of tighter
sanctions, Iranian media quoted a government spokesman as
saying on Sunday. []
Tensions between Iran and the West over its disputed
nuclear programme has been a key driver for oil prices in
recent months.
(Reporting by Fayen Wong; Editing by Anshuman Daga)
