* Libya rebels hope they can restart oil sales soon
* Fed official talks tighter policy, supports dollar
* Coming up: API oil inventory data, 4:30 p.m. EDT Tuesday
NEW YORK, March 29 (Reuters) - U.S. crude oil futures prices fell on Tuesday on continuing hopes that Libya's rebels may soon be able to restart some oil exports and on the prospect that the U.S. central bank may pull back from loose monetary policy.
"The complex maintained a downward course that began last Friday with the market responding at least partially to expectations that Libyan oil exports could be resumed to at least some degree as opposition forces take control of some key oil ports," Jim Ritterbusch, president at Ritterbusch & Associates, said in a research note.
Ritterbusch cautioned that he sees, "such a development as heavily challenged by operational, legal and various logistical issues," but he noted a, "shift in market psychology that is forcing some liquidation out of the oil market."
U.S. policymakers may not be willing or able to wait for all global uncertainties to be resolved before they begin normalizing loose monetary policy, St. Louis Federal Reserve President James Bullard said on Tuesday. [ID:nLDE72S179]
A change in central bank policy, whether a curb of the most recent quantitative easing stimulus or a rise in interest rates, is expected to lower liquidity in financial markets and possibly curb economic growth and oil demand.
Tuesday's crude oil price slip came ahead of weekly oil inventory reports expected to show crude stocks rose last week, while refined products stockpiles slipped. [EIA/S]
FUNDAMENTALS
* On the New York Mercantile Exchange, May crude (CLK1: Quote, Profile, Research) fell 81 cents, or 0.8 percent, to $103.17 a barrel by 8:53 a.m. EDT (1253 GMT), trading from $102.70 to $104.
* Muammar Gaddafi's better armed and organized troops reversed the westward charge of Libyan rebels as world powers gathered to discuss a post-Gaddafi future. [ID:nLDE72S033]
* Europe's prospects of receiving Libyan oil shipments would be weeks away even if rebels were quickly removed from the international sanctions list, as big buyers say shipping and legal risks remain a concern. [ID:nLDE72R1X7]
* Saudi Arabia plans to boost oil rigs by 28 percent. Two Saudi officials told Reuters that the extra rigs would maintain rather than increase capacity. [ID:nN28209969]
* Plutonium found in soil at the Fukushima nuclear complex heightened alarm over Japan's battle against the world's worst nuclear power crisis in 25 years, as pressure mounted on the prime minister to widen an evacuation zone. [ID:nL3E7ET0PZ]
* Yemeni protesters demanding the ouster of President Ali Abdullah Saleh said they would insist he leave power soon. [ID:nLDE72S111]
* Tens of thousands of Syrians held pro-government rallies as President Bashar al-Assad was expected to address the nation after two weeks of democracy protests. [ID:nLDE72S0K2]
* Saudi Arabia is printing 1.5 million copies of an edict by religious scholars outlawing protests in the kingdom as un-Islamic, the state news agency said. [ID:nLDE72S097]
MARKETS NEWS
* U.S. stock index futures were flat near the quarter's end as investors took a wait-and-see stance, unsure of the impact of global crises. [ID:nN29244188]
* Concerns about Italian banks dragged European stocks lower, undermining global gains, while earlier euro strength dissipated. [MKTS/GLOB]
* The euro struggled to hold gains against the dollar, as expectations for a euro zone interest rate rise were offset by a Federal Reserve warning about keeping U.S. monetary policy loose for too long. [USD/] The dollar index (.DXY: Quote, Profile, Research) was up.
* Copper fell on concerns over high inventories and slack demand from top consumer China, exacerbated by talk of further monetary tightening there. [MET/L]
* Gold eased in Europe as expectations that interest rates may rise in key countries reduced interest in the no-yield precious metal. [GOL/]
UPCOMING DATA/EVENTS
* The Conference Board releases its March index of U.S. consumer confidence at 1000 EDT (1400 GMT). Analysts polled by Reuters expect a reading of 65, down from February's 70.4.
* American Petroleum Institute weekly oil inventory data at 4:30 p.m. EDT (2030 GMT) on Tuesday.
* U.S. Energy Information Administration weekly oil inventory data at 10:30 a.m. EDT (1430 GMT) on Wednesday. 8:53 LAST NET PCT LOW HIGH CURRENT DAY AGO
CHNG CHNG VOL VOL CLc1 103.17 -0.81 -0.8% 102.70 104.00 40,935 235,658 CLc2 103.75 -0.81 -0.8% 103.22 104.50 9,754 65,355 LCOc1 114.22 -0.58 -0.5% 113.52 114.80 57,069 138,658 RBc1 3.0198 -0.0076 -0.3% 3.0107 3.0339 1,517 18,545 RBc2 3.0205 -0.0071 -0.2% 3.0071 3.0335 3,785 35,395 HOc1 3.0178 -0.0071 -0.2% 3.0036 3.0276 1,301 19,756 HOc2 3.0342 -0.0070 -0.2% 3.0183 3.0437 4,821 40,088 * NYMEX crude oil for May (CLc1: Quote, Profile, Research) fell 81 cents to $103.17 a barrel by 8:53 a.m. in volume of 40,935 lots. (Reporting by Robert Gibbons; Editing by John Picinich)
NYMEX-Crude slips on Libya oil hope, eyes oil data
