* At least three firms halt output in Libya
* Concern other big producers could suffer supply outages
* Coming Up: January U.S. existing home sales data, API
(Adds comments, updates prices)
By Zaida Espana
LONDON, Feb 23 (Reuters) - Brent crude futures rose on
Wednesday as Libya's ongoing turmoil fuelled fears the unrest
could spread to other oil producing nations and choke supplies.
Brent crude futures <LCOc1> were $1.52 up at $107.30 a
barrel by 1200 GMT, having hit a 2-1/2-year high of $108.70 on
Monday. U.S. crude futures <CLc1> were 57 cents firmer at $95.99
a barrel by the same time, the highest level since October 2008.
Brent continued to gain support after producers including
Repsol, Eni and BASF's Wintershall halted operations amid
violent clashes in Libya, which pumps 1.6 million barrels per
day (bpd), or nearly 2 percent of global supply. []
This disruption marks the first cut in oil supplies related
to a wave of protests in North Africa and the Middle East.
"Brent is set to profit to a greater extent from its tighter
availability and its geographical proximity to the unrest in
Libya and the danger of protests spreading to other oil
producing countries," analysts at Commerzbank wrote in a note.
Around 300,000 barrels per day (bpd) were currently offline,
MF Global analysts said in a note, warning those figures could
rise given the lack of visibility on impact inside the country.
The European Commission said on Wednesday an operation to
evacuate around 10,000 EU citizens from Libya was under way.
[] []
Focus was also on top exporter Saudi Arabia, where ruling
King Abdullah unveiled a package of benefits worth billions of
riyals to mark his return on Wednesday after months of medical
treatment abroad. []
Jittery investors are worried about further supply
disruption if protests spread in the country, which supplies
around 10 percent of the world's oil and holds most of the
world's spare capacity. On Tuesday, Saudi stopped short of
pumping more oil to calm markets, saying prices were driven by
fear. []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Middle East unrest graphic http://r.reuters.com/nym77r
Analysis on long-term impact on Libyan oil: []
Factbox on Libyan oil and gas: []
Libyan oil map: http://r.reuters.com/jem28r
Interactive factbox http://link.reuters.com/puk87r
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OIL SUPPLIES EYED, U.S. STOCKS AWAITED
Although protests in Saudi Arabia have so far been low key,
Shi'ites in neighbouring Bahrain are protesting against the
Sunni-led government, fanning worries this could spill over to
the Shi'ite minority in Saudi's oil-producing eastern province.
"The importance of Bahrain is perhaps being underplayed
currently. While not a major oil producer, Bahrain's impact on
the oil market reverberates through its importance in Saudi
Arabia," Barclays Capital analysts Helima Croft and Amrita Sen
said in a note.
International Energy Agency (IEA) executive director Nobuo
Tanaka said that oil prices above $100 per barrel for the rest
of the year could drag the global economy back into a repeat of
the 2008 economic crisis. []
Brent crude has risen around 12.5 percent so far this year.
U.S. crude is up just under 5 percent on the year, but is over
$50 below its 2008 high of $147.27.
Analysts said U.S. light crude futures remained well
supported following the roll of the contract, although a
potential build-up of weekly U.S. crude oil stockpile data due
later could pressure prices. []
"The fact that WTI has risen further is mainly related to
the contractual rollover, as the new front month contract was
two dollars higher than the expiring contract," Commerzbank
analyst Carsten Fritsch said.
U.S. inventory data from both American Petroleum Institute
and EIA are delayed a day this week due to the Presidents Day
holiday on Monday, with the API report due at 2130 GMT and the
EIA awaited on Thursday.
Analysts polled by Reuters expect crude inventories in the
U.S. rose for the sixth consecutive time last week. []
(Additional reporting by Francis Kan in Singapore; editing by
James Jukwey)
