UPDATE 3-Oil slips towards $107 as supply worries ease
* Libya's major Sharara oilfield to resume operations
* China inflation picks up, limits room for policy easing
* U.S. crude oil stocks likely fell for 2nd week-poll
* Coming Up: API stocks data; 2030 GMT
(Updates throughout, changes dateline from SINGAPORE)
LONDON, July 9 (Reuters) - Brent crude oil fell to around $107 a barrel on Tuesday, as worries about supply disruptions from the Middle East eased, though investors were wary that further negative headlines from Egypt could lead to more volatility.
Raising hopes that the tense situation in Egypt will not degenerate further, interim rulers issued a faster than expected timetable for elections to drag the country out of crisis.
Brent fell 25 cents to $107.18 by 0910 GMT, after slipping to a session low of $106.90 earlier. U.S. crude fell 21 cents to $102.93, recovering from a low of $102.71.
"It seems that some stress has come out of the system and there's a perception that things are going in the right direction," said Maarten van Mourik, economist at Rotterdam-based Argos Energies.
However, the Egyptian timetable came a day after 51 people were killed when troops fired on a crowd supporting ousted President Mohamed Mursi, and fears persist that strife there could disrupt traffic through the Suez Canal, via which a major portion of the world's oil is shipped.
Van Mourik said further negative headlines from Egypt, or elsewhere in the region could see more price spikes.
Highlighting the fragile situation elsewhere in the region, a loud explosion was heard in Beirut's southern suburbs on Tuesday, a stronghold for the Lebanese pro-Syrian Shi'ite Hezbollah militant group, residents said.
Several were killed and wounded in the blast, a Reuters reporter said.
However, improved supply from elsewhere in the region also helped to pressure prices.
Libya's major Sharara oilfield will resume operations after an agreement was reached with the armed group that had shut it down last month, a senior Libyan oil source said on Monday.
The flow of crude from Kirkuk in Iraq to the port of Ceyhan in Turkey will resume in two to three days after being interrupted for weeks due to a pipeline leak, two sources in Iraq's state-run North Oil Company (NOC) said on Monday.
Investors are now waiting for data from China, the world's No.2 oil consumer, that could show growth in the world's second-largest economy grinding towards a 23-year low, according to a Reuters poll.
China's annual consumer inflation accelerated more than expected in June to 2.7 percent as food costs soared, data showed on Tuesday, limiting room for the People's Bank of China to loosen policy to underpin the slowing economy.
(Additional reporting by Jessica Jaganathan in Singapore; editing by James Jukwey)