* Russian troops enter Ukraine, tensions flare
* OPEC output rises in Aug from July - survey
* U.S. GDP growth rebounds in Q2
By Florence Tan
SINGAPORE, Aug 29 Brent crude held above $102 a
barrel on Friday, but prices were heading for a second monthly
loss as ample supply and softening demand in Europe and China
outweighed geopolitical concerns.
The European benchmark plunged over 12 percent from a
nine-month high reached in June to a more than one-year low last
week as bleak demand led to an oil supply glut in the Atlantic
Brent rose 24 cents to $102.70 a barrel by 0247 GMT
and U.S. crude gained 9 cents to $94.64 a barrel,
underpinned by U.S. data showing faster than initially thought
second-quarter growth in the world's top economy.
However, oil prices on both sides of the Atlantic were on
track for a more than 3 percent loss this month.
"I'm just surprised that we've seen such a big discount over
the weeks," said Ben Le Brun, markets analyst at OptionsXpress
in Sydney. If supply tightens, "there's a chance that we're
quite close to the bottom", he said.
West African crude exports to Asia were near record levels
in September, a Reuters survey of traders showed, although the
North Sea market remained well supplied.
Production from the Organization of the Petroleum Exporting
Countries (OPEC) also rose despite geopolitical tensions in
Iraq, Libya and Ukraine.
OPEC, which supplies a third of the world's oil, raised its
output in August from July, on higher supply from Libya, Angola
and Iran, a Reuters survey found.
But analysts expect oil prices to draw some support if the
the situation in Ukraine worsens.
Tensions between Ukraine and Russia flared up after
Ukraine's president said on Thursday that Russian troops had
entered his country in support of pro-Moscow rebels. The United
States and major European countries are considering more
sanctions on Russia.
"We could see a little bit of a premium being applied to oil
prices should those tensions continue to escalate," said
OptionsXpress analyst Le Brun.
(Editing by Himani Sarkar)