* Libyan situation "getting worse," Eni boss tells BBC
* Oil hit on Tue by Fed official's comment on possible tapering
* U.S. crude inventories expected to rise 1 million barrels (Previous SINGAPORE, updates prices)
LONDON, Nov 13 (Reuters) - Oil rose above $106 a barrel on Wednesday as support from supply outages countered concern about the prospect of the U.S. Federal Reserve soon reducing its monetary stimulus and forecasts of a rise in U.S. stockpiles.
Lack of success in weekend talks on Iran's nuclear work reduced the chance of 1 million barrels per day (bpd) of Iranian crude, off the market since 2012 due to sanctions, returning soon. Libyan exports remain disrupted by strikes and protests.
Brent crude was 79 cents higher at $106.60 at 0926 GMT. U.S. crude was up 36 cents at $93.40. The contract fell more than $2 a barrel on Tuesday, hitting a four-and-a-half-month low.
"Traders are just trying to second-guess what the Fed's next move will be," said Ben Le Brun, a market analyst at OptionsXpress in Sydney. "It wouldn't surprise me to see oil prices going a little bit higher, given the falls we've seen."
European equities opened lower, following on from losses in Asia, pressured by concern the Fed may roll back the asset-buying programme as soon as next month. The stimulus has supported commodities and other risk assets.
The next round of talks on Iran's nuclear work is on Nov. 20 and analysts expect the issue to prop up prices.
"It does not appear to us that a breakthrough will emerge soon and that continuing lost Iranian barrels will remain a supportive factor to oil prices," BNP Paribas head of commodity markets Harry Tchilinguirian said in a report.
In Libya, Italian oil and gas group Eni has been producing 60 percent of what it should have been since the start of the year, the chief executive told the BBC on Wednesday.
"It's very much out of control... It's getting worse... but I have reasons to be optimist on the future," Paolo Scaroni said in an interview with the BBC programme Hard Talk.
Forecasts of a rise in U.S. crude stocks limited the rally. Analysts expect a 1 million-barrel increase in Thursday's U.S. Energy Information Administration report.
Before then, industry group the American Petroleum Institute releases its own supply report on Wednesday at 2130 GMT.
