NYMEX-Crude rises to $97 after steep drop

SINGAPORE, Sept 18 (Reuters) - U.S. crude rose to just over
$97 a barrel on Tuesday, regaining some ground after falling as
much as $4 in the previous session in a late, high-volume
sell-off that has prompted an investigation by U.S. regulators.
The Commodity Futures Trading Commission said it was
"looking into" the price plunge that also shaved over $5 off
Brent crude futures, and has contacted exchange operators the
CME Group and the IntercontinentalExchange Inc.

FUNDAMENTALS
* U.S. crude for October delivery rose 42 cents to
$97.04 per barrel by 0041 GMT. London's Brent crude for November
delivery was up 28 cents at $114.07.
* Many traders said the sell-off late on Monday appeared to
have stemmed from a problem with an automated computer trading
program. Another potential cause - rumors of a possible release
of oil by the United States from its strategic reserve to bring
down prices - appeared to have been countered by quick
government denials of such a move.
* Traders said there was no major news that could have
triggered the rapid plunge. Among the few data released was an
indicator that showed factory activity in New York state
contracted for a second month in a row in September, falling to
its lowest level in nearly 3-1/2 years.
* Protesters enraged by a film mocking the Prophet Mohammad
battled with police in several Asian cities on Monday and vented
their fury against the United States, blaming it for what they
see as an attack on the Muslim religion.
* Saudi Arabia stayed away from a meeting on the Syria
crisis convened by regional powers on Monday, setting back a
forum grouping Iran, President Bashar al-Assad's main Middle
East ally, and his leading opponents in the region.

* Power lines to Iran's most controversial nuclear
enrichment plant were blown up a month ago, according to its
atomic energy chief, who alleged on Monday that the U.N. nuclear
watchdog may have been infiltrated by "terrorists and
saboteurs".
* Iraq's oil exports from its southern ports have slipped by
80,000 barrels per day so far in September versus last month,
according to shipping data, but signs of higher northern
shipments could keep supplies close to a post-war record.

MARKET NEWS
* Asian shares retreated from four-month highs on Tuesday as
markets paused from last week's rallies, calculating the impact
on growth from the Federal Reserve's aggressive stimulus and
eyeing whether Spain will request a bailout to ease its fiscal
strains.
* The dollar stayed near seven-month lows against major
currencies on Monday after last week's Federal Reserve
announcement of aggressive easing dampened the outlook for the
U.S. currency.

DATA/EVENTS (GMT)
0900 Germany ZEW economic sentiment Sept
1145 U.S. ICSC weekly chain store sales
1230 U.S. Current account Q2
1255 U.S. Redbook weekly retail sales
1400 U.S. NAHB housing market index Sept
2030 U.S. API weekly crude stocks

(Reporting by Luke Pachymuthu; Editing by Manolo Serapio Jr.
and Miral Fahmy)