* U.S. dollar dips from three-month high against yen
* Euro zone debt crisis worries dampen markets
* MF Global collapse adds to concern about global economy
By Rebekah Kebede
PERTH, Nov 1 Oil prices slipped on Tuesday on a
stronger U.S. dollar, continuing uncertainty about the
resolution of the euro zone's debt crisis and the collapse of MF
The U.S.-based futures brokerage MF Global filed for
bankruptcy protection following bad bets on euro zone debt. Its
meltdown in less than a week made it the biggest U.S. casualty
of Europe's debt crisis and the seventh-largest bankruptcy by
assets in U.S. history.
"As cooler heads prevail and look around and actually start
analysing the euro zone situation, they realise we still got a
ways to go," said Tony Nunan, a risk manager with Tokyo-based
"We are going to drift lower based on a correction from the
euphoria from the EU summit last week until we get new news from
either the FOMC, the G20, or finally on Friday, from the U.S.
But positive news from the U.S. Federal Reserve meeting
ending Wednesday, the G20's mid-week summit, or U.S. payroll
data on Friday could turn markets around, Nunan said.
"If the U.S. Federal Reserve comes out with some kind of
indication that they are willing to do another round of
quantitative easing -- that could easily get the market going
ICE Brent December crude LCOc1 fell 33 cents to $109.23 by
0158 GMT. Brent posted a 6.6 percent gain for October, biggest
since April, and after slumping 10.5 percent in September.
U.S. December crude CLc1 fell 39 cents to $92.80 per
barrel. U.S. crude surged 17.7 percent in October, the biggest
percentage gain since May 2009.
On Monday, oil prices settled lower in thin trading, which
brokers and analysts attributed to MF Global's collapse. The CME
Group said it suspended MF Global as a member of the
A firm dollar also weighed on oil prices. The greenback
pulled back from its three-month high against the yen as the
impact of Japan's currency intervention waned, but was still
stronger against a basket of currencies .
OPEC oil output fell in October as reduced supplies from
Iraq, Nigeria, Saudi Arabia and Angola offset rising Libyan
supply, according to a Reuters survey.
The International Energy Agency does not want OPEC to cut
output at its December meeting because the IEA expects demand
for OPEC oil will grow by half a million barrels per day in 2012
above the group's September output.
U.S. commercial crude oil stocks are forecast to have risen
for the second consecutive time last week as imports continued
to rebound, a preliminary Reuters poll of analysts found on
The industry group American Petroleum Institute's inventory
report is due on Tuesday at 2030 GMT, with the U.S. Energy
Information Administration's report following on Wednesday.
(Additional reporting by Robert Gibbons in NEW YORK; Editing by