* U.S. crude inventories fall 2.1 mln bbls last wk -EIA
* Cushing stocks rise 508,000 barrels -EIA
* Hopes of Ukraine-Russia ceasefire deal dim
* Iraq Basra crude exports fall in Aug on bad weather
By Florence Tan
SINGAPORE, Aug 28 Brent crude dipped on
Thursday, but still held between $102 and $103 a barrel, as
expectations of ample supply weighed on prices.
Global oil supply is expected to exceed demand this year,
cooling prices. Oil futures on both sides of the Atlantic Basin
are on track to post a second monthly decline.
October Brent crude has been unable to break through
the $102-$103 range this week, just off a 14-month low hit last
week. It was down 6 cents at $102.66 a barrel by 0221 GMT on
U.S. crude was unchanged at $93.88 a barrel. The
October contract stayed between $93 and $94 this week, hovering
just above the year's low reached in January.
"It's just dropped so much from its peak and rightly so as
it looks like there is crude everywhere," said Tony Nunan, a
risk manager at Mitsubishi Corp.
"There's just too much supply and we've had terrible
OECD oil inventories rose sharply in the second quarter,
while tit-for-tat sanctions between the European Union and
Russia have curbed growth in Europe, Nunan said.
Hopes that the presidents of Russia and Ukraine could reach
a ceasefire deal dimmed after Ukraine accused Russia of
launching a new military incursion across its eastern border on
Oil futures were little changed in the previous session
following a neutral inventories report from the United States,
while investors looked ahead to economic data to gauge the
outlook for demand in the world's largest oil consumer.
U.S. crude stocks fell 2.1 million barrels last week, more
than expected, but Cushing inventories rose 508,000 barrels,
data from the Energy Information Administration showed on
Political instability in Iraq and Libya continued to weigh
on investors' minds even though exports managed to rise instead
of fall in recent months.
Analysts have warned that a comeback by Libya's oil industry
may be short-lived as armed groups and two parliaments fight for
control of the North African country.
Similarly, an Islamist insurgency in Iraq has threatened to
derail long term output plans set by OPEC's second largest oil
Exports from Iraq's southern terminals so far in August have
fallen by about 140,000 barrels per day, according to loading
data and industry sources who attributed the decline to bad
"That's why I think Brent has stabilised around here because
there's so much uncertainty in the Middle East," Nunan said.
(Reporting by Florence Tan; Editing by Joseph Radford)