--Unrest in Kazakhstan, Upbeat Macro-economic news from Europe support oil futures --Meeting in Rome to discuss sanctions on Iran's oil exports eyed --Trading volumes are expected to remain low in pre-holiday week By Konstantin Rozhnov Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Crude oil futures were higher Tuesday amid unrest in Kazakhstan's oil and gas producing province, better-than-expected macro-economic news from Germany and Spain and ahead of a meeting in Rome where several countries, including the U.S. and Saudi Arabia, will discuss sanctions on Iran's oil exports. "Within a macroeconomic environment that continues to exhibit very uncertain tendencies it is above all the geopolitical risks which can shore up the price," Commerzbank said in a note. At 1045 GMT, the front-month February Brent contract on London's ICE futures exchange was $1.77, or 1.7%, higher at $105.41 a barrel. The front-month January contract on the New York Mercantile Exchange was trading up $1.42, or 1.5%, at $95.30 a barrel. The contract expires later Tuesday. The euro strengthened against the dollar after Spain sold more debt than planned and at a much lower cost and German Ifo business climate survey exceeded expectations, hinting at a good outlook for the German economy. Dollar-denominated oil futures tend to rise when the dollar weakens. Elsewhere, reports of anti-government protests in Kazakhstan's province of Mangistau also support oil prices, analysts said. Kazakhstan exported around 1.5 million barrels a day of crude in 2010, according to VTB Capital's Andrey Kryuchenkov. "Kazakhstan has traditionally been seen as politically stable, so even scarce information on rising tensions in the west of the country brings back memories of the Arab Spring and adds to the geopolitical risk premium in oil," Kryuchenkov said. The unrest isn't a good sign, as "we need some peace in oil producing countries" to ease supply worries, said Thina Saltvedt, senior oil market analyst and Nordea Bank Norge. Supply worries are also fuelled by anticipation of the meeting in Rome where possible sanctions on Iran's oil exports will be discussed. It is unlikely any decisions will be made at the meeting, but it will be interesting to see if western countries "are still aggressive in discussing embargo," Saltvedt said. Trading volumes are likely to remain low in thin pre-holiday trading, but "more jittery trading is on the way," said Kryuchenkov. At 1045 GMT, the ICE's gasoil contract for January delivery was up $10.00, or 1.1%, at $898.00 a metric ton, while Nymex gasoline for January delivery was 399 points, or 1.6%, higher at $2.5290 a gallon. -By Konstantin Rozhnov, Dow Jones Newswires; +44 207 842 9956; konstantin.rozhnov@dowjones.com

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