* Weak U.S. data, fiscal uncertainties keep markets on
* Israel, Syria worries keep prices supported
* Coming up: U.S. API weekly stocks data; 2130 GMT
SINGAPORE, Dec 4 (Reuters) - Brent futures slipped below
$111 per barrel on Tuesday as demand concerns moved into focus
after weak manufacturing data from top consumer the United
States, while uncertain U.S. fiscal deficit negotiations also
kept investors on the edge.
But supply worries stemming from simmering tensions in the
Middle East including a fragile ceasefire between Israel and
Palestine and worsening unrest in Syria helped cushion prices.
"Oil markets are starting to come off on the
weaker-than-expected manufacturing data and the fact that the
U.S. economic outlook remains unclear," said Natalie Rampono,
commodity strategist at ANZ in Sydney.
"We are also seeing mixed headlines on the "fiscal cliff"
negotiations, so markets have already taken on a cautious
outlook on that account."
Front-month Brent futures slipped 29 cents by 0258
GMT to $110.63, after breaking through a key resistance level to
close below its 200-day moving average in the previous session.
U.S. crude slipped 32 cents to $88.77 per barrel. Following
its inability break above resistance at $90.30, the contract
will probably head into a $87.19-$87.93 range, according to Wang
Tao, Reuters market analyst, commodities and energy technicals.
Investors have been fretting about the fiscal health of the
world's biggest economy, especially in light of the ongoing
weakness in the crisis-ridden euro zone.
Concerns increased after the Institute for Supply Management
(ISM) said on Monday that its index of national factory activity
fell to 49.5 in November from 51.7 the month before, the lowest
since July 2009.
The U.S. data outweighed the positive impact from Chinese
manufacturing data earlier on Monday, which reaffirmed the view
of a pickup in the world's biggest energy consumer.
Adding to jitters is the increasing uncertainty on
negotiations to avert a "fiscal cliff", a $600 billion package
of spending cuts and tax increases effective early 2013 that
threatens to tip the economy back into recession.
The White House dismissed a proposal from congressional
Republicans on Monday that included tax reforms and spending
cuts, saying it did not meet President Barack Obama's pledge to
raise taxes on the wealthiest Americans.
MIDDLE EAST CONFLICT
Incessant tensions in the Middle East and related worries
about the impact on oil supplies from the region continue to
The biggest concern at the moment is that the fragile
ceasefire between Israel and Palestine may be at risk after
Israel said it will continue to expand its settlements in West
Bank and East Jerusalem.
An escalation of a 20-month old civil conflict in Syria,
which worsened after the government spokesman fled the country
and the United Nations decided to withdraw its non-essential
staff, added to fears of supply disruptions.
Investors are also awaiting inventory data from the American
Petroleum Institute (API) due later on Tuesday. Crude stocks are
expected to have risen by 100,000 barrels in the week ended Nov
30, a preliminary Reuters poll showed.
(Editing by Himani Sarkar)