UPDATE 7-Oil falls as supply concerns ease
* Reports some Libya oil may return to market as ports reopen
* U.S. crude, gasoline stocks decline - EIA
* Seaway pipeline "operating normally" - spokesman
* Coming up: Federal Reserve minutes at 2 p.m. EDT (1800 GMT
(Updates prices, changes byline, dateline (pvs LONDON)
NEW YORK, Aug 21 (Reuters) - Oil prices on both sides of the Atlantic fell Wednesday on reports that some Libyan oil exports might soon resume, and that the Seaway pipeline carrying crude out of the U.S. Cushing hub was operational.
About half of Libya's more than 1.2 million barrels per day (bpd) of crude oil export capacity is out of action due to strikes and civil unrest, but officials said Tuesday some ports have reopened and more shipments could restart within days.
The Seaway pipeline that carries crude oil from Cushing, Oklahoma, the delivery point for the U.S. West Texas Intermediate (WTI) contract, to the Texas coast, was "operating normally," a spokesman for Enterprise Products Partners L.P. said.
The resumption was also reported by industry intelligence provider Genscape, which on Tuesday reported a shutdown on the line.
The U.S. Energy Information Administration released data showing stocks at Cushing, Oklahoma, had fallen for the seventh straight week and was down 25 percent over that seven-week period. Nationally, crude oil stocks declined by 1.4 million barrels and gasoline stocks showed a large draw, especially in the heavily populated East Coast region.
Both Brent and WTI traded within a range of less than $1 down as investors showed caution ahead of the release of minutes from its July policy-setting meeting.
"If was down, it was down for less than a day, and that's why the market wasn't giving it real attention," said Gene McGillian, an analyst with Tradition Energy in Stamford, Connecticut.
"Now the market's going to wait for the Fed minutes to come out."
Brent futures for October were off 30 cents at $109.85 a barrel by 11:41 EDT (1541) GMT. U.S. October oil fell 53 cents to $104.58 a barrel. The September U.S. crude contract expired on Tuesday, closing down 2 percent at $104.96, its largest one-day loss in two months.
The spread between Brent and WTI stood at $5.27, after widening by more than $2 in Tuesday's session.
Investors were also keeping a wary eye on the U.S. Federal Reserve, which has said it will gradually ease back on monetary stimulus that has pumped trillions of dollars into asset markets, helping boost oil prices over the last few years.
The Fed will release minutes of its July policy meeting on Wednesday, which investors will scour for clues on when it plans to taper its bond purchases.
VOLATILITY IN THE MIDDLE EAST
The situation in Libya is volatile with conflicting reports of port activity and varying estimates of oil exports.
The head of Libya's Petroleum Facilities Guard said on Tuesday striking workers at a key oil port fired on civilians and injured at least one person. Independent confirmation of the shooting was not immediately available.
The political crisis in Egypt also stoked supply worries.
Egypt is home to the Suez Canal and the Sumed pipeline, which together carry around 4.5 million bpd of oil between the Red Sea and the Mediterranean. The Egyptian army has said it will guarantee the safety of the canal and pipeline but any disruption could have a major impact on oil prices.
(Additional reporting by Peg Mackey and Christopher Johnson in London, Luke Pachymuthu in Singapore; editing by Jim Marshall)