RTRS:UPDATE 2-Brent near one-week high of $104 on U.S. data
* U.S. housing, consumer confidence numbers fuel demand hopes
* Worsening Syrian conflict adds to supply worries
* Coming Up: API inventory numbers; 2030 GMT (Updates prices)
By Ramya Venugopal
CHENNAI, India, May 29 (Reuters) - Brent crude futures steadied on Wednesday near a one-week high above $104 per barrel, as upbeat U.S. housing and consumer confidence data sparked expectations of improved demand from the world's top consumer.
"People are starting to realise that the United States has got to lead us out of this economic slump," said Tony Nunan, an oil risk manager at Mitsubishi Corp in Tokyo.
"The main worries are unemployment and housing, and housing seems to be on a steady growth path. That and the geopolitical risk is keeping prices supported."
Front-month Brent futures slipped 23 cents to $103.99 per barrel by 0657 GMT, after rising more than $2 in the previous session to the highest since May 21. U.S. crude shed 40 cents to $94.61.
Data on Tuesday showed that U.S. home prices accelerated in March by the most in nearly seven years as spring buying gave the sector traction, while surging consumer confidence pointed to a resilient recovery.
Worries about global economic health, particularly after poor manufacturing numbers out of China, and fears that the U.S. Federal Reserve may begin scaling back its easy money programme have weakened oil markets this year.
Brent is down more than 12 percent from this year's high of more than $119 in February, while U.S. crude has lost more than 3 percent from its January high above $98.
"Macro factors remain a headwind for oil prices," Morgan Stanley analysts said in a note. "However, we continue to see fundamental support for higher prices this summer."
The worsening conflict in Syria has kept concerns simmering over supply from the Middle East.
Britain and France said on Tuesday they did not have to wait until Aug. 1 to arm rebels fighting Syrian President Bashar al-Assad, and Russia said it would not scrap plans to deliver an air defence system to the conflict-ridden nation.
U.S. oil prices may also be supported by crude inventory data that is likely to show commercial crude stockpiles fell for a third consecutive week on lower imports and higher refinery activity.
The American Petroleum Institute releases inventory numbers on Wednesday, with figures from the Energy Information Agency due on Thursday.
Technical indicators point to a drop for oil. Brent is expected to retrace to $103.29, while U.S. crude may drop to $94.07 per barrel, said Reuters technical analyst Wang Tao. (Editing by Michael Urquhart)
