* Crude stocks at Cushing decline by 1.1 mln barrels-API * U.S. home price gains slow, consumer confidence lower * Rockets hit Libyan power plant as militias battle (Updates previous SINGAPORE) By Shadi Bushra LONDON, Feb 26 (Reuters) - Brent oil held above $109 a barrel on Wednesday after a steep fall in stockpiles at the Cushing delivery point for U.S. crude, with prices constrained by weak economic data in the world's top oil consumer. Investors are also assessing the prospects for oil demand after the United States and Europe emerge from severe cold and refiners take plants down for maintenance after meeting peak winter consumption. U.S. crude inventories at the Cushing, Oklahoma delivery hub fell by 1.1 million barrels last week, data from industry group the American Petroleum Institute (API) showed, even though overall domestic stockpiles rose by 822,000 barrels. Brent crude had slipped 7 cents to $109.44 a barrel by 1014 GMT. U.S. oil rose 35 cents to $102.18. "We're not looking at an overly bullish set of numbers from API. The question is really whether the numbers are going to be confirmed by the Department of Energy," said Harry Tchilinguirian, head of commodities strategy at BNP Paribas. Prices may draw support from prolonged unrest in North African exporter Libya, he said. "On Brent, you're looking at more international issues - Libya is having a very difficult time and there is increasing geopolitical tension in Sudan," said Tchilinguirian. More than 100 rockets fired in clashes between rival government-paid militia have knocked out a power plant in southern Libya, in yet another indication of the struggle the government faces in controlling the unrest. The gain in overall U.S. crude oil stockpiles was, meanwhile, lower than analyst expectations for an increase of 1.2 million barrels. Gasoline stocks fell by 314,000 barrels, compared with expectations in a Reuters poll for a 1-million-barrel decline. Distillate fuel stockpiles, which include diesel and heating oil, fell by 693,000 barrels, compared with expectations for a 1.2-million-barrel drop, the API data showed. Investors now await data from the U.S. Department of Energy's Energy Information Administration (EIA) later on Wednesday to get a clearer picture. U.S. home price gains slowed in December, underscoring a loss of momentum in the housing recovery, while consumer confidence drifted lower this month. But the weakness in the housing sector may have been in part due to the bitter cold and severe snowstorms. Oil markets are also watching the outlook for demand in China. The world No.2 oil consumer's corporate debt has hit record levels and is likely to accelerate a wave of domestic restructuring and trigger more defaults as credit repayment problems rise. (Additional reporting by Manash Goswami in Singapore; Editing by Dale Hudson)

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