* Brent crude hits 9-month low on ample supply
* German shares lag after sentiment data shows Ukraine fear
* Euro dips towards nine-month low vs dollar
By Nigel Stephenson
LONDON, Aug 12 Crude oil hit a nine-month low on
Tuesday as ample supply outweighed concern violence in the
Middle East could disrupt output, easing the impact on investors
of a fall in some European shares.
German shares fell on Tuesday and the euro weakened against
the dollar after a gauge of economic sentiment in Europe's
biggest economy hit its lowest since December 2012, reflecting
the impact of the Ukraine crisis.
Wall Street looked set to open flat to slightly higher,
according to stock index futures.
Brent crude fell more than $1 to less than $104 a
barrel, its lowest since November.
The International Energy Agency (IEA) said that while the
situation in several key oil-producing countries "remains more
at risk than ever", supplies were ample.
Investors are closely following events in Iraq, where the
president named a new prime minister on Monday to replace Nuri
al-Maliki and the United States has bombed Islamic State
"In terms of the physical side of things, particularly for
Brent, there are pretty high inventories at the Atlantic Basin
at the moment and that's holding back gains," said Ankit Pahuja,
a commodity strategist at investment bank ANZ.
In another crisis troubling investors, Moscow said a convoy
of 280 trucks carrying humanitarian aid set off for Ukraine, a
day after the head of NATO warned against using offers of help
as a pretext for invasion.
Germany's DAX index fell 0.7 percent,
underperforming the pan-European FTSEurofirst 300 index
, which was down just 0.1 percent.
"The drop in the ZEW index confirms the near-term downside
risk for the German and euro zone economies emanating from the
Ukraine crisis," said Berenberg Bank economist Christian Schulz.
"That does not change the fundamentally positive outlook,
however. Germany remains in a strong position to capitalise on
any sentiment improvements once the Ukraine crisis fades from
the headlines, and many euro zone countries are enjoying the
benefits of their reforms."
The euro fell as low as $1.3337, just above a nine-month low
of $1.3333 hit last week, as the plunge in German investor
morale exacerbated worries about a slowdown in the euro zone's
"The sentiment survey is consistent with some of the loss in
momentum we have seen for the German economy and does not bode
well for the euro zone," said Jeremy Stretch, head of currency
strategy at CIBC World Markets.
Russian shares fell, reversing big gains on Monday. The
dollar-denominated RTS index lost 0.8 percent while the
rouble-based MICEX fell 0.2 percent. The rouble was 0.66
percent weaker against the dollar at 36.14.
Things had looked less bearish in Asia. MSCI's broadest
index of Asia-Pacific shares outside Japan rose
0.6 percent, adding to Monday's 1.5 percent gain. Tokyo's Nikkei
stock index firmed 0.2 percent.
The dollar edged higher against other major currencies,
helped by a slight rise in U.S. Treasury yields, though the
geopolitical tensions that have dominated financial markets in
recent weeks were expected to restrict gains.
The U.S. currency edged up 0.1 percent to 102.27 yen,
having hit a two-week low of 101.51 yen on Friday.
U.S. 10-year Treasury notes yielded 2.43 percent, up a shade
from New York closing levels.
Yields on German government debt, the euro zone benchmark,
edged down less than a basis point to 1.057 percent
. German yields touched a series of record lows in
recent days as investors sought assets perceived as safe havens,
before rebounding on Monday.
Gold firmed as equities fell. It last traded at just
over $1,311 an ounce.
(Additonal reporting by Anirban Nag, Jan Harvey and Jason Neely
in London and Wayne Cole in Sydney; Editing by Ruth Pitchford)