UPDATE 7-Oil rises on Egypt violence, euro zone optimism

Matthew Robinson
Reuters Middle East

* Egyptian violence erupts, stirs supply concerns

* Enbridge says briefly shut Midwest pipeline due to leak

* Oil gets boost from equities

(Updates prices)

NEW YORK, Nov 23 (Reuters) - Oil rose in thin holiday trade

on Friday as fresh protests in Egypt once again stoked supply

concerns, with additional support coming from optimism about

talks on releasing aid to Greece.

Crude prices moved higher as U.S. equity markets got a boost

from hopes for strong consumer buying on "Black Friday", the

start of the holiday shopping season.

After hostilities between Israel and Palestinians bolstered

prices earlier in the week, traders were closely watching

violence erupting in Egypt stirred by a decree by President

Mohamed Mursi that put his decisions above legal challenge.

Protesters accused him of launching a "coup", while oil

traders were once again on watch for any potential spillover

that could impact Middle East oil supplies.

Markets also found support after Greece said the

International Monetary Fund had relaxed its debt-cutting target

for the country, suggesting lenders were closer to a deal for a

vital aid tranche to be paid. Worries about the euro zone crisis

- and the impact on struggling fuel demand - have weighed on

crude prices throughout the year.

In addition, German business sentiment surprised with a rise

in November, breaking a six-month run of declines. The closely

watched Munich-based Ifo think tank said its business climate

index rose to 101.4, beating forecasts.

"It looks like there's some strength in the oil market today

on the back of high hopes on a stronger (European Union)," said

Carl Larry, president of Oil Outlooks and Opinions LLC.

"Something that might be going unnoticed has been the

consistent reports of strong retail sales today for Black


Trading ended early after the U.S. Thanksgiving holiday, and

many players were off. Brent crude futures rose 83 cents

to settle at $111.38 a barrel and closed the week up $2.43.

Brent trading volumes were nearly 60 percent below the

30-day moving average, while U.S. crude volumes were down almost

75 percent.

Front-month U.S. crude gained 90 cents to settle at

$88.28 a barrel, up $1.61 on the week. U.S. crude also found

some brief support on news of a spill on Enbridge's

318,000-barrels-per-day Line 14 near Mokena, Illinois.

The company later said the line had been shut on Tuesday and

restarted later in the day.

Traders were also keeping a close eye on the fragile,

two-day truce between Israel and Palestinians, after the

hostilities sent Brent prices to one-month highs this week.

(Reporting by Matthew Robinson; Additional reporting by Claire

Milhench in London and Jessica Jagnathan in Singapore; Editing

by Marguerita Choy and Dale Hudson)

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