RTRS:UPDATE 4-Oil steady above $107 on Ukraine tension
* Brent crude oil on track for third weekly loss
* Heightened tension over Ukraine supports market
* Plenty of oil from Iraq, other producers, IEA says
* Coming Up: U.S. consumer sentiment for March at 1355 GMT (Updates prices; paragraphs 5-6)
By Christopher Johnson
LONDON, March 14 (Reuters) - Brent crude oil steadied above $107 a barrel on Friday, on track for a third weekly loss amid worries over Chinese economic growth and rising U.S. stockpiles, although tension in Ukraine heightened worries over Russian oil supplies.
Russia launched new military exercises near its border with Ukraine, showing no sign of backing down on plans to annex its neighbour's Crimea region despite a stronger than expected drive for sanctions from the EU and United States.
The conflict has provided support for global oil markets as traders worry it could lead to a disruption of oil supplies from Russia, one of the world's biggest oil producers.
"Poor economic data from China and the referendum in the Crimea on Sunday are ensuring continued high levels of risk aversion on the markets," said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
Brent crude oil was up 15 cents at $107.54 a barrel by 1215 GMT after settling 63 cents lower on Thursday.
U.S. crude was trading 40 cents higher at $98.60 a barrel, having closed 21 cents higher.
The International Energy Agency said on Friday a surge in supply from Iraq and other oil producers should be more than sufficient to meet growing demand this year.
The IEA said Iraq's oil output surged by 530,000 barrels per day in February to 3.62 million bpd, the highest since 1979.
Slowing Chinese economic growth has raised concerns over oil demand in the world's second largest consumer.
Solid U.S. retail sales and labour market data raised optimism about the global economy, and also reinforced expectations that the U.S. Federal Reserve would stick to its plan of gradually withdrawing its asset-buying stimulus.
Still, U.S. crude has lost nearly 4 percent this week, its steepest fall since early January, after the U.S. government surprised markets on Wednesday by announcing a test release from its strategic petroleum reserve.
The United States offered a modest 5 million barrels in what some observers saw as a message from the Obama administration to Russia, whose intervention in Ukraine may disrupt oil supplies from the major producer. (Additional reporting by Jacob Gronholt-Pedersen in Singapore; Editing by William Hardy)
