* Concerns over North Africa supply disruptions support
* Investors cautious ahead of Fed minutes
* Coming up: EIA oil inventory data at 1430 GMT
By Luke Pachymuthu
SINGAPORE, Aug 21 Brent crude eased for a third
session out of four to trade just above $110 a barrel on
Wednesday, reflecting caution among investors waiting for more
clues from the Federal Reserve on its stimulus strategy.
Brent touched one-week lows on Tuesday on worries the Fed
would curb its monthly $85-billion bond purchases from next
month, which could dampen demand for oil in the world's No.1
Supply risks amid tensions in Egypt and Libya provided some
support to prices.
Brent crude for October delivery was off 14 cents at
$110.01 a barrel by 0208 GMT.
U.S. October oil was little changed at $105.12 a
barrel. The September contract expired on Tuesday, closing down
2 percent at $104.96, its largest one-day loss in two months.
"There is a risk revision on commodities in general now. A
lot of money has come out of the market because of the
uncertainty over the Fed's stimulus policy, so expect to see
rangebound trading like we have had in the past few weeks," said
Carl Larry, president of Houston-based consultancy Oil Outlooks
The Fed will release minutes of its latest policy meeting
later on Wednesday, with investors looking for clues on when it
plans to taper its bond purchases that have boosted market
liquidity and supported commodities in recent years.
Political crisis in Egypt and labour unrest in Libya
continued to stoke worries over supplies.
"Egypt is on the boil, and if this thing spins out of
control you'll have alarm bells going off among other producers
in the region about a potential domino effect," Larry said.
"Egypt is not a major oil producer but it is home to one of
the most important shipping routes for commodities. If things go
bad, who will ensure the security of the Suez Canal?"
In OPEC nation Libya, the head of the country's Petroleum
Facilities Guard said that striking workers at a key oil port
had fired on civilians and injured at least one person.
Independent confirmation of the shooting was not immediately
About half of Libya's more than 1.2-million-barrel-per-day
export capacity remains shut down due to civil unrest, industry
Elsewhere, U.S. commercial crude oil and gasoline
inventories are forecast to have dropped last week, while
distillate inventories likely rose, an expanded Reuters poll of
(Reporting by Luke Pachymuthu; Editing by Joseph Radford)