* Positive German IFO numbers offset some bond sale worries

  * U.S. crude stockpiles down sharply, providing support

  * Middle East tensions continue, but Libyan output steps up (Adds fresh quotes, updates prices)

  By Claire Milhench

  LONDON, Nov 24 (Reuters) - Oil prices rose towards $108 on Thursday, helped by bigger-than-expected stock draws in the United States and tensions around Iran, while stronger German data offset some of the negative sentiment generated by Wednesday's poor bond auction.

  Brent crude oil futures rose 71 cents to $107.73 a barrel at 1255 GMT after pushing up over $1 to an intraday high of $108.09.

  U.S. crude was up 73 cents at $96.90 a barrel after earlier touching $97.18. But traders said volumes should be thin as the U.S. market is closed for the Thanksgiving holiday.

  " We're due for a pretty quiet couple of days - the markets won't stray too far ... we are more likely to see a narrower trading range," said Tony Machacek, a trader at Jefferies Bache.

  Crude stockpiles in the United States unexpectedly fell week-on-week by 6.2 million barrels as refinery rates rose and crude imports dropped, the Energy Information Administration said on Wednesday. The consensus forecast was for a 500,000 barrel build.

  " Oil is benefiting from the EIA inventory report which showed a surprisingly sharp draw in U.S. crude oil stocks, which have fallen below the five-year average for the first time this year," said Carsten Fritsch, an analyst at Commerzbank in Frankfurt.

  " As we head into winter with the lowest stocks in several years on crude and heating oil/distillates this is keeping a floor under the prices," agreed Michael Poulsen, oil analyst at Global Risk Management.

  Fritsch also pointed to recovering stock markets and a higher euro/dollar as more positive economic data from Germany helped offset some of the negative sentiment generated by Wednesday's failed bond auction.

  The FTSEurofirst 300 was up 0.78 percent at 1229 GMT and the dollar was down 0.39 percent against a basket of currencies after German business sentiment rose in November for the first time since June.

  The closely-watched IFO business climate index bucked expectations to rise to 106.6 from 106.4 in October .

  The poor German bond auction had raised fears the eurozone debt crisis was beginning to threaten Europe's biggest economy. French President Nicolas Sarkozy will press German Chancellor Angela Merkel on Thursday to let the European Central Bank act decisively.

  Speaking at a conference in Vienna, Fatih Birol, the International Energy Agency's chief economist, warned that the high oil price could " strangle" efforts to get the global economy back on its feet and may also hamper Asia's ability to help the West exit its crisis.

  Given the negative economic backdrop, Fritsch said oil prices had held up reasonably well.

  " I would have expected them to come under a lot more pressure," he said. " But tighter supplies and geopolitical risk regarding Iran are helping prices stay elevated."

 

  MIDDLE EAST TENSIONS

  EU countries have been discussing an extension of sanctions on Iran over its nuclear programme and France has been pushing for this to include a ban on imports of Iranian oil.

  France is also seeking Arab support for a humanitarian corridor in Syria, the first time a major power has swung behind international intervention in the eight-month uprising against President Bashar al-Assad.

  Meanwhile, in Saudi Arabia, two people have been killed and three wounded in an exchange of fire between Saudi security forces in the oil-producing Eastern Province and what the interior ministry called gunmen serving a foreign power.

  But there were further signs that Libyan output was picking up pretty quickly following the end of the civil war, with its Mellitah Oil and Gas Company restarting production from the offshore Bouri field at a rate of 10,000 barrels per day.

  The National Oil Corporation also issued a tender to sell up to one million barrels of Sharara grade crude oil, the first for this grade since production resumed.

  (Additional reporting by Florence Tan in Singapore editing by James Jukwey)

* Q3 profit 409.7 mln yuan vs forecast 432.23 mln

  * Slowest profit growth in nearly 2 years

  * Says cautious about global economic outlook

  * Co focused on service quality rather than growth-analyst (Adds analyst quote, details)

  By Melanie Lee

  SHANGHAI, Nov 24 (Reuters) - Alibaba.com, China's largest e-commerce firm, posted an 11.9 percent rise in quarterly net profit, its slowest growth in nearly two years, with the company raising concerns due to a weak trade outlook stemming from debt woes in Europe and the United States.

  The third-quarter results missed analyst forecasts and were attributed to a weak macroeconomic climate that led to a slower pace of customer additions.

  " They are focusing on the quality of suppliers and also improving the overall quality of products that they are offering, such as some of the newer services to help buyers to check the quality of products before they are shipped," said Dick Wei, an analyst with JPMorgan.

  " If you look at customer growth, there are no new initiatives and growth is not that top priority at this point," Wei said. " Revenue will pick up again later in 2012 or 2013."

  Alibaba Group, parent of Alibaba.com, has seen a series of protests and dissatisfaction from its clients and suppliers.

  Earlier this year, a significant increase in fraudulent transactions had caused a management reshuffle in Alibaba.com and prompted the e-commerce firm, one of the best known Chinese internet names, to step up supervision of suppliers.

  This week, hundreds of sellers from Taobao -- which focuses mainly on consumer-to-consumer transactions -- protested outside the firm's Hangzhou offices, calling for the abolition of the website's feedback system, local media said.

  Alibaba.com operates an e-commerce website that links Chinese businesses looking to sell their goods to overseas buyers. Alibaba Group, founded by billionaire Jack Ma, is 40 percent owned by Yahoo Inc.

  Alibaba.com's exposure to international markets makes its turnover sensitive to the performance of the world's major economies such as the United States and Europe.

  " The third quarter of 2011 presented a picture filled with challenges arising from the weaknesses in the U.S. economy and the debt troubles in the euro zone, which have threatened to spin out of control," Alibaba.com said in a statement.

  " We are more cautious about the global economic outlook and believe that it may have a prolonged impact on China's export sector," the group said.

  Growth in China's factory output is likely to fall slightly to between 12 and 13 percent in 2012 due to weakening global demand, the industry ministry said on Thursday, but that level probably still implies a comfortable GDP growth rate of 8 to 9 percent next year.

  Fears that China may be set for a sharp slowdown flared again on Wednesday after HSBC's flash PMI survey showed the factory sector shrank the most in 32 months in November on signs of domestic economic weakness.

  " Despite the stress posed by the external environment, we will stay focused on upgrading our business model and building quality, trustworthy e-commerce platforms," Alibaba.com Chief Executive Jonathan Lu said in a statement.

 

  SLOWING PACE

  Net profit for July-September rose to 409.7 million yuan ($63 million) from 366.1 million a year earlier, below an average forecast of 432.23 million from three analysts polled by Thomson Reuters I/B/E/S.

  Revenue grew 10.6 percent to 1.6 billion yuan and revenue from its international marketplace rose 11.8 percent to 947.5 million.

  Revenue from its China Gold Supplier membership package was up 11.5 percent at 918.6 million yuan, contributing 57.3 percent to total revenue. Value-added services formed 30 percent of China Gold Supplier revenue in the quarter.

  The number of paying members rose 4.9 percent to 787,653 compared with the same period last year. Subscribers for its China Gold Supplier and Global Gold Supplier packages fell 1.3 percent and 24.8 percent, respectively.

  The firm said the slowing pace of customer additions and renewals was expected because of Alibaba.com's recent initiatives to beef up the quality of its membership base and a price hike in the beginning of the year.

  Alibaba.com said pressure on membership renewal may continue in the fourth quarter as a special one-time offer granted to existing members to renew at an old lower price expires.

  Alibaba.com, which competes with Global Sources Ltd , said in September it may spin off and publicly list its internet application services provider HiChina.

  Alibaba.com shares were up 2 percent before the results. They have lost about 36 percent this year, compared with a 22 percent fall in the broader Hang Seng Index. ($1 = 6.3590 Chinese yuan) (Additional reporting by Twinnie Siu and Lee Chyen Yee in Hong Kong Editing by Vinu Pilakkott and David Holmes)

* HSI up 0.5 pct, Shanghai Composite up 0.3 pct

  * Anticipation of China loosening spurs HK short-covering

  * Financials, property plays see respite, lead gains

  * Turnover low as global risk aversion stays high (Updates to midday)

  By Clement Tan

  HONG KONG, Nov 24 (Reuters) - Hong Kong shares reversed early losses to trade higher by midday Thursday, lifted by a bout of short-covering in some technically oversold stocks in weak turnover, with strength in defensives suggesting risk aversion remains high.

  Agile Property Holdings Ltd jumped 9.1 percent after slumping 34 percent from a peak on Oct. 28, while China Resources Power Holdings Co Ltd was the leading percentage gainer on the Hang Seng Index, jumping 6.3 percent.

  " Anticipation of policy loosening in China after the bad flash PMI yesterday is spurring some short-covering, but we also need to remember the Hang Seng Index has also moved in an about 1,000-point range this week," said Linus Yip, strategist with First Shanghai Securities in Hong Kong.

  The Hang Seng Index was up 0.45 percent at 17,944.72 by the midday trading break, near the top of the morning's trading range after opening below the 61.8 percent Fibonacci retracement of its rise from the Oct. 4 low to Oct. 28 high.

  Gains were driven largely by Chinese banks, insurance and property counters, sectors that have seen heavy short-selling interest with uncertainty about the real extent of the slowdown in the property sector.

  China's top two banks, Industrial and Commercial Bank of China Ltd (ICBC) and China Construction Bank Corp (CCB) were among the top boosts to the Hang Seng Index, gaining 1.9 and 0.8 percent, respectively.

  A loss of more than 53 percent in 2011 to date has driven CCB's forward 12-month earnings multiples close to the lowest since its Hong Kong listing debut in 2006, according to Thomson Reuters Starmine data.

  But at 5.8 times, it is still higher than its " Big Four" peer, Bank of China Ltd's 4.3 times. Bank of China edged up 0.8 percent in the morning, but is down more than 40 percent in 2011 to date.

  Short-selling interest in CCB, however, remained high. Excluding Thursday, short interest averaged about 30 percent of its daily turnover.

 

  SHANGHAI UP ON FINANCIALS, PROPERTY

  The mid-morning reversal in Hong Kong also sparked the same on the Shanghai Composite Index, which was up 0.3 percent at 2,401.9 points at midday, but with A-share turnover was lacklustre.

  Financials and property stocks also lent support, with the sub-index of financials listed in Shanghai up 0.9 percent and property plays up 0.8 percent, both relative outperformers.

  ICBC was the top boost, gaining 1.2 percent. China Life Insurance Co Ltd, which has come under heavy selling pressure, gained 3 percent. Before Thursday, China Life Insurance had lost 6 percent since a peak on Nov. 15.

  Expectations of monetary easing in the mainland was rife and drove gains, but they were tempered on Thursday by a local media report quoting the central bank saying its recent move to revise reserve requirements for several rural banks did not amount to a cut in their reserve requirement ratio. (Editing by Chris Lewis)

* PBOC denies reports that it cut RRR for selective banks

  * Market leads c.bank in forecasting policy easing

  * Slowing global, domestic economy seen paving way for easing

  * Five-year IRS at 2.93 pct, effectively breaching 3 pct

  By Lu Jianxin and Jacqueline Wong

  SHANGHAI, Nov 24 (Reuters) - China's interest rate swaps dropped again on Thursday, with the benchmark five-year IRS effectively breaking through a main barrier at 3 percent, as the market shrugged off caution from the central bank that it had not eased monetary policy.

  The People's Bank of China was quoted as saying on Thursday that a recent move to revise bank reserve requirement ratios (RRR) for several rural banks did not amount to a cut in their reserve requirements.

  Sources told Reuters earlier this week that the PBOC had cut the RRR for five banks in the eastern province of Zhejiang, a centre for private enterprise, by 50 basis points to 16 percent to support the rural economy.

  Some investors had speculated that the adjustment was part of a government campaign to relax monetary policy in some quarters of the economy. The talk gained traction after a manufacturing survey showed output at a 32-month low in November.

  The market has bet that the PBOC will loosen monetary policy in the past few weeks, but the central bank has acted to cool down hopes of an immediate easing.

  " Investors continue to factor in an expected PBOC policy easing in coming months no matter what the central bank says," said a trader at a Chinese stock brokerage in Shanghai.

  " The idea is that a slowing global and Chinese economy will eventually enforce a monetary policy relaxation."

  The five-year IRS fell 3 bps to 2.93 percent after it fell below support at Wednesday's close for the first time since October last year, when the PBOC launched a new cycle of monetary tightening to fight runaway inflation.

  One-year IRS dropped 5 bps to 2.91 percent while the 10-year IRS lost 2 bps to 3.04 percent.

  China's money market rates staged a correction after steep rises over the past week as the PBOC is injecting money into the market via open market operations this week.

  The central bank refrained from draining money via government bond repurchase agreements on Thursday, and is on course to end the week with a net injection of 22 billion yuan ($3.5 billion) into the market.

  Last week, the PBOC conducted a net drain of 2 billion yuan from the market, reversing a net injection over the previous two weeks, as it acted to cool hopes of an immediate policy easing, and that had pushed up money market rates to very high levels.

  The weighted average seven-day repo rate fell to 4.1370 percent at midday from 4.3513 percent at Wednesday's close. The overnight repo rate was down at 3.9568 percent from 3.9769 percent while the 14-day repo rate dropped to 4.7059 percent from 4.8960 percent.

  Current Prev close Change

  (pct) (bps) 7-day repo 4.1370 4.3513 - 21.43 7-day SHIBOR 4.1050 4.3325 - 22.75 Note: Repo rate is weighted average.

  ($1 = 6.36 Yuan)

* U.S. wants Iraqi oil industry to move forward

  * Says had pointed out risks to deals with the KRG (Adds quotes, background)

  WASHINGTON, Nov. 23 (Reuters) - The U.S. State Department said on Wednesday it hopes Iraq and Exxon-Mobil Corp. will resolve their dispute in a way that will not undercut the future development of Iraq's oil resources.

  Exxon is the first major oil company to sign an oil exploration agreement with the Kurdistan Regional Government (KRG) in north Iraq, which is locked in a feud with the Arab-dominated central government over territory and oil rights.

  A top Iraqi official said Tuesday that Baghdad may impose sanctions on Exxon before the end of the year because of its deal with the KRG.

  " The continued rapid development of Iraq's oil sector is in everyone's interest and we look to the government of Iraq and Exxon-Mobil to resolve this issue in a way that will not impede future progress in this critical sector," State Department spokeswoman Victoria Nuland said in a written response to a question asked at her briefing on Tuesday.

  The State Department has said that it warned Exxon, and all major U.S. oil companies with whom it has had contacts, that there were significant risks to signing deals with the KRG before Iraqs passed a national oil law.

  The oil legislation, which has been under discussion for years, would decide such vital issues such as the role of federal and regional authorities in regulating oil and gas development and how to share energy sector revenues.

  The department said that it typically consults with U.S. companies doing business overseas but it declined to get into the details of its contacts with Exxon.

  " We have always advised and continue to advise all oil companies, including Exxon-Mobil, that they incur significant political and legal risks by signing any contracts with the Kurdistan Regional Government before national agreement is reached on the legal framework for the hydrocarbon sector," Nuland added.

  " We have been clear on this issue but, at the end of the day, U.S. companies make their own market-based decisions," she added. (Reporting by Arshad Mohammed editing by Philip Barbara)

By Jim Loney

  BAGHDAD (Reuters) - At the peak of the United States' war in Iraq, the U.S. military had more than 170,000 troops, 500 bases replete with tents and toilets, kitchens and motor pools, and an airline that flew hundreds of times a day across the country.

  Moving day has lasted more than a year.

  The U.S. withdrawal from Iraq after nearly nine years of war is believed to be one of the largest removal jobs in history. At the start of the year logistics experts calculated there were nearly 3 million pieces of equipment to be moved, from airplanes, helicopters and tanks to laptops and lights.

  " It is the largest move of military equipment we have done since World War Two," said Lieutenant Colonel Jerry Brooks, a U.S. military historian.

  Soldiers, trucks and weaponry are streaming out of Iraq every day. From that peak of 170,000 troops, about 18,000 remain this week, with hundreds leaving daily. Virtually all will be gone before Christmas.

  Since September 2010, around 2 million pieces of equipment have been redeployed, U.S. officials say, some back to the United States, others to Afghanistan or other locations.

  By September 1, the clutter had been reduced to about 20,000 truckloads. This week, about 9,000 truckloads remained.

  " It's not as glamorous as it was when you're out on patrol in a village, helping some young Iraqi, or building a school or capturing a terrorist. But it's historic," said Brigadier General Bradley Becker of the move out.

  " Someday I truly believe that future military classes ... will study the logistics (of our) move out of Iraq."

  PALACES EMPTIED

  Closing down the Iraq war has meant shutting down the U.S. military bases, which numbered 505 at the peak and included everything from small desert fuelling depots to massive installations where Americans have been entrenched for years.

  The Victory Base complex in Baghdad, the heart of the war operation surrounded by 42 km (27 miles) of concrete blast walls and razor wire, once hosted 40,000 troops and more than 20,000 contractors. Balad, north of Baghdad, had 36,000 residents.

  Victory was so big it had a reverse osmosis water plant that could generate 1.85 million gallons a day, an ice plant, a 50-megawatt power generating station, stadium-sized chow halls and a laundromat with 3,000 machines able to do 36,000 loads a day.

  Now the generals have moved from Saddam's missile-damaged palaces, the war operations room has been cleared of computers and phones and the barber shops, DVD stores and restaurants like Burger King, Subway and Green Bean are fast disappearing.

  AIR SERVICE WINDING DOWN

  For years, in U.S. air terminals across Iraq, on flat-screen monitors or white boards, generals and soldiers, journalists and contractors watched for flight information to BIAP (Baghdad International Airport), Tikrit, Mosul or other destinations.

  Between combat, medical evacuations and ferry service, the U.S. intra-Iraq airline flew scores of times every day.

  At the peak in 2009, there more than 400 aircraft which flew daily, Brooks said.

  " The MNC-I Aviation brigade averaged 157 missions a day. We had 28 helicopters devoted to just flying passengers around Iraq on scheduled flights."

  Joint Base Balad, with two 11,000-foot runways, had 27,500 takeoffs and landings a month in 2006, second only to London's Heathrow, U.S. officials said.

  THE WAY OUT

  For months, a steady stream of tanks, troop carriers, artillery and other gear has flowed from remote bases to collection yards in Baghdad and elsewhere, and then out of the country, mostly to Kuwait.

  One U.S. military officer said logistics experts had estimated there was $7.8 billion worth of " theatre-provided equipment" -- the tanks, trucks, tables and chairs and other things the soldiers don't carry themselves -- to move.

  On a single day, the dusty yard at Victory Base held 186 HumVees, 22 MRAPs, four M-1 Abrams tanks, eight Paladin Howitzer artillery systems, four Stryker fighting vehicles and scores of generators, lighting systems and other gear.

  U.S. record-keepers itemize everything, including the equipment to be left behind. About a quarter of the gear, mainly HumVees, radios and weapons, was headed to Afghanistan.

  At big bases like Victory, buildings, mess halls, offices, water treatment and electrical plants, Containerized Housing Units (CHUs), desks, tables and chairs, are being handed over to the Iraq government, and tons of equipment is being scrapped.

  In many cases, the cost of moving something wasn't worth it. In others, the equipment wasn't worth it.

  " A lot of the computers we've been using for the last eight years ... the guts are ripped out," said 1st Lieutenant Michael Saslo, logistics coordinator at the yard. " There's no point putting those on a convoy and risking a soldier's life for it."

  By early November, nearly 4 million items worth $390 million had been given to Iraq, including 26,000 CHUs worth $124 million and 89,000 air conditioners worth $18.5 million. Logisticians said they had saved taxpayers $685 million in transport costs.

  " We don't ship toilets," said one soldier.

  The exception appeared to be Saddam Hussein's toilet, taken from the Victory Base cell where he was held for two years and destined for display in a U.S. military museum.

By Florence Tan

  SINGAPORE (Reuters) - Brent crude rose above $107 on Thursday as potential strong winter fuel demand and turmoil in the Middle East offset fears that a global economic slowdown could hurt consumption.

  Crude stockpiles in the United States fell more than expected last week as refinery rates rose and crude imports fell. A botched German bond sale on Wednesday raised alarm that the crisis could hit even Europe's largest economy.

  ICE January Brent futures rose 48 cents to $107.50 a barrel by 0315 GMT. Brent is poised for a third year of gains because of the political turmoil in the Middle East.

  U.S. January crude, set for its second week of decline, was up 3 cents to $96.20 a barrel. Trading volume is expected to remain thin as the United States is closed for the Thanksgiving holiday.

  Tony Nunan, risk manager at Mitsubishi Corp, said winter and the uncertainty in the Middle East would support the market in the short term.

  " OECD inventories are so low and we're running into winter," he said. " Seasonally December is the highest demand period."

  U.S. crude inventories fell 6.22 million barrels last week, against an expected increase of 500,000 barrels, data from the U.S. Energy Information (EIA) showed.

  Nunan expects Brent to average at $110-$113 a barrel while maintaining a $7-$10 spread with U.S. crude.

  Brent's premium against U.S. crude widened to $11.28, from $10.85 at Wednesday's close.

  Goldman Sachs said on Wednesday the WTI-Brent crude oil spread was likely to widen in the near term following a rapid unwinding in recent weeks, but the reversal of the Seaway pipeline would see it narrow again by the end of 2012.

  EURO ZONE

  The ongoing debt crisis in the euro zone combined with weaker economic data from China and the United States increased worries that global growth could slow and reduce fuel demand.

  A majority of twenty prominent economists polled by Reuters also predicted that the euro zone was unlikely to survive the crisis in its current form, with some envisaging a " core" group that would exclude Greece.

  Weaker Chinese factory output worried investors while U.S. consumer spending growth slowed in October and business capital investment plans were weak, raising questions about expectations for solid economic performance in the fourth quarter.

  In the Middle East, street clashes flared in Cairo again on Wednesday while an eight-month revolt in Syria dragged on.

  " The big issue is, of course, Iran," added Mitsubishi's Nunan. " It's slow moving but sanctions are ratcheting up and it's a question of whether Israel can wait."

  Israeli Prime Minister Benjamin Netanyahu called on Wednesday for stronger sanctions on Iran than those imposed this week by the United States, Britain and Canada to try to curb its nuclear ambitions.

BEIJING (Reuters) - China's Foreign Ministry on Wednesday said it opposes unilateral sanctions against Iran, days after several Western countries announced new measures against Tehran to halt its nuclear programme.

  The United States, Britain and Canada announced new measures against Iran's energy and financial sectors on Monday and France proposed " unprecedented" new sanctions, including freezing the assets of its central bank and suspending purchases of its oil.

  " China is always against unilateral sanctions against Iran and is even more opposed to the expansion of such sanctions," Foreign Ministry spokesman Liu Weimin told reporters at a regular press briefing, reiterating the need for negotiations.

  " We believe pressure and sanctions will not fundamentally solve the Iranian issue, but will complicate the issue. Intensifying confrontation is not conducive to the region's peace and stability," Liu said.

  Iran has dismissed the new wave of sanctions, saying the West's attempts to isolate its economy would only serve to unite Iranians behind their government's nuclear programme.

  The latest sanctions were prompted by a U.N. nuclear agency report that suggested Iran had worked on an atomic bomb design. Tehran maintains its work is entirely peaceful and said the report was based on false Western intelligence.

  But the series of unilateral steps were meant to pressure Iran to suspend the nuclear programme before it gets the bomb. Israel and Washington say they do not rule out military strikes if other efforts fail.

  Critics of the sanctions said they would fail to stop Iran's nuclear work and would play into the hands of a government that wears its hostility to Washington as a badge of pride.

  The moves by the Western governments came outside of the United Nations, where Russia and China -- both permanent U.N. Security Council members with veto power -- agree that Iran should not be subjected to sanctions.

  Russia called the U.S. moves " unacceptable.

  China, which has kept close ties with Iran, has backed past U.N. Security Council resolutions criticising Iran's position on nuclear issues and authorising limited sanctions.

  But Beijing has repeatedly resisted Western proposals for sanctions that could seriously curtail its energy and economic ties with Iran, China's third-largest crude oil supplier.

  It has said Chinese firms will business dealings with Iran should not be targeted.

  Iran shipped 20.3 million tonnes of crude oil in the first nine months of the year, up by almost a third on the same period last year, according to Chinese data.

  (Reporting By Sui-lee Wee Writing by Michael Martina Editing by Jonathan Thatcher)