* Libyan output down more than 25 pct - Reuters calculation
* ENI estimates Libyan output has fallen by 1.2 mln bpd
* North Sea Brent reaches almost $120, U.S. crude over $100
(Updates detail, prices)
By Christopher Johnson
LONDON, Feb 24 (Reuters) - Oil surged more than 7.5 percent
to its highest since August 2008 on Thursday on concern
uprisings in Libya could spread to other major oil producers in
the Middle East, including Saudi Arabia.
Brent crude oil for April <LCOc1> spiked up $8.54 a barrel
to a peak of $119.79 before easing to around $114.50 by 1355
GMT. U.S. crude futures for April <CLc1> rose as high as
$103.41, the highest September 2009. They were up $2.20 at
$100.30 at 1355 GMT.
Unrest in the world's 12th-biggest exporter has cut at least
400,000 barrels per day (bpd) from Libya's 1.6 million bpd
output, according to Reuters calculations. []
ENI <ENI.MI> Chief Executive Paolo Scaroni said Libyan
output had fallen much more dramatically:
"There are 1.2 million barrels (per day) less on the
market," Scaroni told reporters in Rome. []
Eastern areas holding much of Libya's oil have slipped from
the control of Muammar Gaddafi, who has unleashed a bloody
crackdown on protesters to keep his 41-year grip on power.
Goldman Sachs said the spread of unrest to another producing
country could bring oil shortages and require demand rationing.
"The market cannot accommodate another disruption, in our
view," analyst Jeffrey Currie said in a research note.
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Graphics on crude prices, volumes and outlook:
http://graphics.thomsonreuters.com/WT/20112402104605.jpg
http://graphics.thomsonreuters.com/WT/20112402111227.jpg
http://graphics.thomsonreuters.com/AS/0810/NT_112402165534.jpg
U.S. oil price rise graphic: http://link.reuters.com/byv28r
Unrest in MidEast, N. Africa: []
Analysis on impact on Libyan oil sector: []
Factbox on Libyan oil and gas: []
Interactive factbox http://link.reuters.com/puk87r
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EYES ON SAUDI
Major banks joined the chorus of calls on Thursday for OPEC
to act quickly on fears the strong oil prices could derail the
fragile economic recovery. []
Barclays Capital <BARC.L> and Citi <C.N> said it saw no
downward pressure on prices until more oil comes to the market.
"Unless we see an explicit move from ... producer countries,
i.e. Saudi Arabia, I don't think there is necessarily going to
be any downward pressure on prices," said BarCap analyst Amrita
Sen. []
Eugen Weinberg, Commerzbank's head of commodities research,
said the situation called for "some extraordinary measures".
"This is an opportunity for OPEC to prove whether they are
really able to (step) into this production gap," he said.
The cuts from Libya represent the first disruption to supply
as a direct result of protests that have swept through the
oil-producing regions of north Africa and the Middle East.
The concern for oil markets is how unrest might affect Saudi
Arabia, which not only pumps around 10 percent of the world's
oil but is also the only holder of significant spare crude
production capacity that can be used to plug outages.
SUPPLIES IN FOCUS
Without Saudi Arabia's 4 million bpd of spare capacity,
there is little margin in the global oil supply system.
Senior Saudi sources said on Thursday the kingdom could
supply high quality, light oil to replace any lost Libyan crude.
"Saudi is willing and capable of supplying oil of the same
quality, either Arab extra light or through blending," one
source said. "OPEC stipulates that it is able to supply all
types of oil if needed," the source added. []
To date, Saudi Arabia has escaped popular protests that have
raged across the Arab world, toppling the leaders of Egypt and
Tunisia and spreading as far as Saudi neighbour Bahrain.
Saudi King Abdullah has unveiled benefits for Saudis worth
$37 billion in an apparent bid to insulate the oil exporter from
protests in the region. However, hundreds of people have backed
a Facebook page campaigning for a 'day of rage' across the
kingdom on March 11 to demand reforms and greater democracy.
Weekly U.S. oil inventory data from industry group API
showed on Wednesday that petroleum stocks had risen by 163,000
barrels last week, after analysts polled by Reuters had forecast
a bigger rise of 1.2 million barrels. [] []
Distillate inventories fell a less-than-expected 534,000
barrels and gasoline supplies fell 1.6 million barrels, API data
showed, bucking analyst expectations for a rise.
The U.S. Energy Information Administration's weekly
inventory data were due to be released at 1600 GMT on Thursday.
(Additional reporting by Nia Williams, Emma Farge, Claire
Milhench and Dmitry Zhdannikov in London; editing by Keiron
Henderson)
