* Fed stimulus expected to boost commodities prices * Gains limited by concern high oil prices will hit demand, GDP * Anti-U.S. protests, Iran nuclear dispute supportive to oil FREE GUIDES AND REPORTS FROM DIANOMIADVERTISEMENT Oil Trading Professional Secrets: How to Profit from Oil Download FREE Report * Coming up: API oil data 4:30 p.m. EDT Tuesday (Recasts with updated prices, market activity; changes byline and dateline, pvs LONDON) By Robert Gibbons NEW YORK, Sept 17 (Reuters) - Brent crude futures dipped on Monday, while U.S. crude edged higher, in choppy trading as expectations that U.S. Federal Reserve stimulus will boost commodities lent support even as concerns that high prices might curb demand helped keep prices in check. Brent posted a seventh straight higher settlement and hit a four-month high of $117.95 per barrel on Friday, after Thursday's Federal Reserve launch of a third round of quantitative easing (QE) aimed at strengthening the employment. Protests continued over a film mocking the Prophet Mohammad that has unleashed a wave of anti-Western sentiment in the Muslim and Arab region, keeping worries about disruptions to oil supplies in focus. "Any breakdown in law and order in the Middle East or North Africa is potentially bullish for oil as it could impact on production," said Olivier Jakob, energy market analyst at Petromatrix in Zug, Switzerland. The West and Israel's dispute with Iran over Tehran's nuclear program also remained supportive to oil prices. Brent November crude slipped 54 cents to $116.12 a barrel by 11:11 a.m. EDT (1511 GMT), having traded from $116.06 to $117.02. U.S. October crude was up 26 cents at $99.26 a barrel, having reached $99.52, but unable to push back over the $100 level. Friday's $100.42 peak was the highest since early May. Brent and U.S. crude posted weekly gains of more than 2 percent. "The petroleum markets are mixed ... as investors take an apparent breather from the risk-on trade flow that followed last week's (Fed) decision, with some profit taking emerging to offset some of the follow-through buying," Tim Evans, analyst at Citi Futures Perspective in New York, said in a research note. "There's also some talk that while the QE3 program might boost economic activity overall, the relatively high price of oil products will have an offsetting limiting effect on the physical demand for fuel," Evans added. Factory activity in New York state contracted for a second month in a row in September, a report from the New York Federal Reserve showed on Monday, falling to its lowest level in nearly 3-1/2 years as new orders shrank further. (Additional reporting by Christopher Johnson in London and Luke Pachymuthu in Singapore; Editing by Marguerita Choy)

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