UPDATE 4-Brent rises above $109; recovery after US storm eyed

* Power outages, flooding hit U.S. East Coast after Sandy

* OPEC crude oil output rises slightly in October - survey

* Crude stockpiles up 2.1 million barrels last week -API

(Updates prices, adds details)

LONDON, Oct 31 (Reuters) - Brent crude rose above $109 a barrel on Wednesday as the U.S. East Coast began to pick itself up from a massive storm, but gains were capped by concerns over the demand impact on the world's largest oil consumer.

Roads in the region remained shut as New York City and the eastern part of the United States were left crippled by flooding and power outages, suggesting lower fuel consumption.

But most refineries emerged unscathed from storm Sandy, a bright spot in the demand picture.

Brent crude for December delivery was up 22 cents at $109.30 by 1330 GMT. U.S. crude for December rose 62 cents to $86.30.

``We expect high volatility and nervous trading conditions as it is month-end and first day back for the U.S. markets,'' said Myrto Sokou, a senior research analyst at Sucden Financial.

The CME is resuming floor trading of oil, natural gas and other commodities during normal hours on Wednesday at the NYMEX world headquarters in New York.

Meanwhile, millions across the U.S. Northeast will attempt to resume their normal lives as companies, markets and airports reopen despite grim projections of power and mass transit outages around New York for several more days.

The region's biggest refinery, in Philadelphia, and several others, were ramping up operations after escaping damage from the storm.

But fuel demand in the storm-hit region is likely to be down as roads and New York's LaGuardia Airport remained shut.

New York City is likely to struggle without subways for days, authorities said. Buses were operating on a limited basis, and many residents were walking long distances or scrambling to grab scarce taxi cabs on the streets.

``The demand picture is not there,'' said Rob Montefusco, oil broker at Sucden Financial in London.

``No one has been driving about, so you've lost the demand there, but in the following week you probably will see a catch-up,'' he said.

Prices also came under pressure from an increase in supply from OPEC as well as data showing a bigger-than-expected rise in U.S. crude oil inventories.

OPEC crude oil output has risen slightly in October as extra supplies from Iraq, Angola and Libya offset a further decline in Iran and export disruptions in Nigeria, a Reuters survey found on Wednesday.

U.S. crude inventories rose by 2.1 million barrels last week, slightly more than expected, while distillate inventories dropped sharply even as refinery operations jumped, data from the American Petroleum Institute showed. Analysts had expected crude stockpiles to rise by 1.5 million barrels.

The U.S. Energy Department has delayed its weekly petroleum inventory report by a day to Thursday.

(Additional reporting by Florence Tan; Editing by Anthony Barker and Jane Baird)