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UPDATE 8-Oil rises $1 amid Libya supply outages

Anna Louie Sussman
Wednesday, 13 Nov 2013 | 11:32 AM ET

* Libyan situation "getting worse," Eni boss tells BBC

* Uncertainty on Fed stimulus withdrawal curbs risk appetite

* Coming up: API U.S. supply report, 2130 GMT

(Updates prices, changes byline, dateline, previous LONDON)

NEW YORK, Nov 13 (Reuters) - Oil futures on both sides of the Atlantic climbed more than $1 on Wednesday as support from Libyan supply outages offset forecasts of a rise in U.S. stockpiles and uncertainty over how soon the U.S. Federal Reserve will begin to reduce monetary stimulus.

Libyan exports remain disrupted by strikes and protests, and the head of Eni said the situation was getting worse.

"Brent was still drawing some support from renewed violence in Libya that further dampened hopes the government could resolve the mass protest and significantly boost supplies before year-end," said Andrey Kryuchenkov, analyst at VTB Capital.

Brent crude rose $1.40 to $107.21 cents a barrel by 11:10 a.m. EST (1610 GMT), and hit an earlier high of $107.31. U.S. crude rose $1.41 to $94.45. The U.S. contract fell more than $2 a barrel Tuesday to a four-and-a-half-month low.

U.S. crude trailed Brent for most of the session, allowing the spread to widen to $14.03 at one point, its widest since April, though the spread narrowed to $12.76 as U.S. crude caught up.

"There's no doubt that U.S. crude is being dragged up, kicking and screaming," said Phil Flynn, an energy analyst with the Price Futures Group in Chicago, Illinois.

"It's getting pulled up by the unwinding of the spread."

Having moved above $107, Brent's next resistance point is $107.38 and then the 200-day moving average at $107.92, said Olivier Jakob, analyst at Petromatrix.

European equities were lower, mirroring losses in Asia, pressured by concern the Fed may roll back its stimulative asset-buying program as soon as next month. The stimulus has supported commodities, equities and other risk assets.

Lack of success in weekend talks on Iran's nuclear work reduced the chance of 1 million barrels per day (bpd) of Iranian crude returning soon to the market.

In Libya, Eni has been producing 60 percent of what it should have been since the start of the year, the chief executive told the BBC on Wednesday.

"It's very much out of control... It's getting worse... but I have reasons to be optimist on the future," Paolo Scaroni said in an interview with the BBC program Hard Talk.

Forecasts of a rise in U.S. crude stocks limited the rally. Analysts expect a 1 million-barrel increase in Thursday's U.S. Energy Information Administration report.

Ahead of that, the American Petroleum Institute releases its own supply report Wednesday at 4:30 p.m. EST (2130 GMT).

(Additional reporting by Jacob Gronholt-Pedersen and Alex Lawler; Editing by Bernadette Baum)