Nov 6 (Reuters) - Palestinian President Mahmoud Abbas said on Thursday he did not wish to run for re-election in January, voicing disappointment at Washington for "favouring" Israel in arguments over relaunching peace talks.

His announcement immediately raised these questions.

IS ABBAS SERIOUS?

* Abbas insisted his decision is not a tactical move, but analysts believe the 74-year-old leader is manoeuvering. Two top bodies have unanimously asked him to stay on. Analysts say many people do not expect the elections to be held anyway.

WHAT PROMPTED HIS DECISION?

* The United States dropped its stand that Israel freeze the building in Jewish settlements in the occupied West Bank and Arab East Jerusalem. Aides said Abbas felt "betrayed and frustrated" when U.S. Secretary of State Hillary Clinton said Israel's offer to restrain settlement activities was "unprecedented" and urged Abbas to restart peace talks without demanding more.

WHAT DOES HE REALLY WANT?

* He has based his career on peace talks and still believes there can be peace with Israel if world powers pressure it to accept a Palestinian state on territories Israel occupied in the 1967 war with East Jerusalem as its capital. Analysts believe he aims to put pressure on the United States to do this.

IS THERE AN ALTERNATIVE TO HIM?

* Abbas has no obvious successor. A few names are mentioned as potential leaders but it remains to be seen who might step forward. Nominations for the Jan. 24 presidential election commences on Nov. 30 and runs for 12 days. Among possible candidates are former security chief Mohammad Dahlan who has been building up a following; Marwan Barghouthi, a popular figure who is however serving a life sentence in an Israeli prison, and Prime Minister Salam Fayyad, a former World Bank and IMF technocrat favoured by the West but with not by Abbas's dominant Fatah movement.

(Writing by Mohammed Assadi; Editing by Douglas Hamilton and Angus MacSwan)

(For blogs and links on Israeli politics and other Israeli and Palestinian news, go to http://blogs.reuters.com/axismundi)

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