* U.S., EU impose more sanctions on Russia over Ukraine
* Libya says oil output stays at 500,000 bpd
* U.S. crude stocks fall 4.4 million barrels last week - API
* Coming up: EIA weekly oil data; 1430 GMT
By Theodora D'cruz and Florence Tan
SINGAPORE, July 30 Brent crude hovered in a
tight range near $107.50 a barrel on Wednesday as investors eyed
U.S. data and policy decision from the Federal Reserve for more
Geopolitical tensions in the Middle East, Africa and Europe
continued to underpin prices, although so far there has been no
major disruption to oil supplies.
Brent crude, which has been trading between
$106-$109 over the past two weeks, slipped 18 cents to $107.54 a
barrel by 0324 GMT on Wednesday. U.S. crude rose 15 cents
to $101.12 a barrel.
"Hopefully we'll get some action tonight or from what's
coming up this Friday," said Jonathan Barratt, chief investment
officer at Ayers Alliance Securities in Sydney.
He added that if the U.S. economy requires less stimulus,
that could translate into more demand for oil and lift prices.
The Fed is expected to cut its monthly bond-buying program
by another $10 billion and its policy statement, together with
key jobs data on Friday, could provide some hints on how well
the world's largest economy is doing.
"I do feel that $106.50-$107.50 is a very good support for
Brent and we really need some definition to see a break through
these levels," Barratt said.
Investors took news of further sanctions by the European
Union and the United States against Russia in stride, while
waiting to see how President Vladimir Putin would react.
The latest sanctions which cover the energy sector may slow
down oil exports from Russia, said Yusuke Seta, a commodity
sales manager at Newedge Japan.
Continued fighting in the Middle East and Africa hotspots
supported oil prices.
Israel intensified its assault on Gaza although conflicts in
OPEC producers Iraq and Libya have yet to impact oil production.
Libya has kept its oil output at around 500,000 barrels per
day despite escalating violence in Tripoli, an official from the
Libyan Oil Ministry said on Tuesday.
In the United States, industry data showing a
bigger-than-expected fall in crude inventories offset the impact
on oil prices from a refinery fire.
U.S. crude fell on Tuesday after a fire broke out at a unit
that upgrades gasoline at CVR Refining's 115,000-barrel-per-day
refinery in Coffeyville, Kansas, a major consumer of West Texas
Data from industry group the American Petroleum Institute
showed that crude inventories fell by 4.4 million barrels in the
week to July 25 to 369.4 million, versus analysts' expectations
for a drop of 1.5 million barrels.
The U.S. Department of Energy's Energy Information
Administration (EIA) will release its own weekly petroleum
stockpiles data later on Wednesday.
(Editing by Himani Sarkar)