UPDATE 6-Brent firms over $108 ahead of Fed
* U.S. crude stocks at lowest since March 2012 - EIA
* Fed expected to taper stimulus, may hurt oil prices
* Big western Libya oilfield ramps up production
* Easing tensions over Syria reduce risk premium to oil
(Updates prices, adds EIA data)
LONDON, Sept 18 (Reuters) - Brent crude rose above $108 a barrel on Wednesday after crude oil stockpiles in top consumer the United States sank to the lowest level since March 2012.
The North Sea benchmark had eased in earlier trade as supply from Libya began to recover after strikes and unrest had pushed flows to the lowest level since the civil war in 2011.
But losses were reversed after the Energy Information Administration reported that U.S. crude oil stocks fell by 4.4 million barrels last week.
Brent rose 24 cents to $108.43 a barrel by 1450 GMT, after slipping to its lowest in more than a month in the previous session.
U.S. crude gained 81 cents to $106.23, after settling $1.17 per barrel lower on Tuesday.
Libyan oil supplies are expected to rise to between 400,000 and 450,000 barrels per day (bpd) as one of the biggest western oilfields, El Sharara, ramps up after workers resumed pumping on Monday. The country's oil production, however, is still far below its pre-war level of 1.6 million bpd.
For a 24-hour technical chart analysis on Brent:
For a 24-hour technical chart analysis on U.S. oil:
Investors were also awaiting the outcome of a two-day Fed meeting at which the U.S. central bank is expected to cut its monthly bond purchases by at least $10 billion.
While the likely outcome of the Fed discussions might already be priced into oil, a bigger tapering could pose a risk to oil prices and prompt selling, analysts said.
Oil had also been pressured after world powers held talks to eliminate Syria's chemical weapons - easing concerns that oil supply from the Middle East would be at risk.
(Additional reporting by Jessica Jaganathan in Singapore; Editing by William Hardy)