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NYMEX-Crude heads for 3rd straight weekly loss as supply fears ease

TOKYO, July 11 (Reuters) - U.S. crude oil futures fell further below $103 early on Friday, putting the contract on course for its third straight weekly loss as geopolitical tensions in Iraq and Libya cooled to allay worries about petroleum supplies.

FUNDAMENTALS

* U.S. crude futures for August delivery fell 16 cents to $102.77 a barrel by 0003 GMT, setting the contract on track for a 1.2 percent decline for the week.

* The benchmark contract recovered from a nine-day losing streak on Thursday, finishing 64 cents higher for the day.

* Libya's oil output has risen to 350,000 barrels per day thanks to the southern El Sharara field ramping up production, a spokesman for National Oil Corp said on Thursday.

* The U.N. atomic agency said on Thursday it believed nuclear material which Iraq said had fallen into the hands of insurgents was "low grade" and did not pose a significant security risk.

* OPEC expects its share of the world oil market to shrink in 2015 for a third year running, due in part to the U.S. shale oil boom, giving the exporter group little comfort from an acceleration in global demand.

* Commodity funds delivered robust returns in the second quarter, consolidating their recovery since the start of the year, with rallies in energy and metals boosting the top performers in the Lipper Global Commodity group.

MARKETS NEWS

* The yen was poised to end the week higher on Friday, having lunged forward overnight as a fall in global equities lifted demand for the safe-haven currency.

* Stocks slumped worldwide on Thursday and investors flocked to safe-haven government bonds and gold on fears problems at Portugal's biggest listed bank could herald a wider slump for riskier assets.

* U.S. stocks dropped on Thursday as concerns about the financial health of Portugal's top listed bank gave investors a reason to cash in recent gains.

DATA/EVENTS

* The following data is expected on Friday: (Time in GMT)

0600 Germany Wholesale price index June

0645 France Current account May

1800 U.S. Federal budget June

(Reporting by James Topham; Editing by Richard Pullin)