UPDATE 7-Oil prices choppy as Egypt supports, dollar weighs
* 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 at 4:30 p.m. EDT
(Recasts lead, adds details, updates prices; changes byline and dateline, previous LONDON)
NEW YORK, July 9 (Reuters) - Brent crude oil was moderately higher in choppy trade on Tuesday on buoyant U.S. equities and concern that further violence in Egypt could ignite conflict in the broader Middle East.
But improved global supplies and a stronger U.S. dollar hindered gains.
Brent crude oil futures were trading 11 cents higher at $107.54 at 11:15 a.m. EDT (1515 GMT), after slipping to a session low of $106.85 earlier. U.S. crude oil futures were trading 10 cents higher to $103.24, recovering from a low of $102.31.
Brent is still up more than $7 per barrel from mid-June, lifted by a better macro-economic backdrop and Middle East supply worries. It gained 5.4 percent last week, its biggest gain in a year.
Egypt's interim rulers, aiming to defuse a tense situation after 51 people were killed in violence on Monday, issued a faster-than-expected timetable for elections to try and drag the country out of crisis.
Highlighting the fragile situation in other parts of the Middle East, which pumps a third of the world's oil, 53 people were wounded by a car bomb blast in Beirut's southern suburbs on Tuesday.
The U.S. dollar index hit a fresh three-year high against a basket of currencies, creating headwinds for oil prices. The stronger dollar was underpinned by a good start to U.S. earnings season and stronger equities.
Commodities priced in dollars become more expensive for holders of other currencies as the dollar strengthens, weakening demand.
"The dollar has made a strong move up in the last hour and that we still see as a big threat to energy prices," said Walter Zimmermann, chief technical analyst for United-ICAP.
Improved supply from elsewhere in the Middle East helped push oil prices lower for now.
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 said on Monday.
Also weighing on prices were expectations growth in China, the world's No. 2 oil consumer, was grinding towards a 23-year low, according to a Reuters poll.
In the U.S., traders awaited supply inventory data expected to show a decline in crude oil stocks.
(Additional reporting by Simon Falush in London and Jessica Jaganathan in Singapore; Editing by James Jukwey, Susan Fenton, David Evans and Chris Reese)