* Venezuelan Libya peace plan seen unlikely to work out
* Shi'ites stage protests in Saudi oil province
* Coming Up: U.S. Feb non-farm payrolls, 1330 GMT
(Updates prices, adds Bahrain and Yemen unrest, dollar)
By Claire Milhench
LONDON, March 4 (Reuters) - Crude oil rose by more than $1
on Friday, with Brent hovering around $116, as fighting in Libya
intensified with fresh reports of air strikes, and on protests
in Saudi Arabia's oil-producing Eastern Province.
By 0955 GMT, Brent crude futures for April delivery <LCOc1>
were up $1.14 to $115.93 a barrel, after earlier touching
$116.20. U.S. crude futures for April <CLc1> rose 68 cents to
$102.59 a barrel, but earlier rallied by over $1 to $103.03.
Investors and traders have been nervously tracking the civil
unrest in North Africa and the Middle East for any sign that
Saudi Arabia, OPEC's leading oil producer, would be affected.
On Thursday Saudi Shi'ites staged protests in two towns in
its oil-producing Eastern Province, demanding the release of
prisoners they say are being held without trial. []
In Libya, rebels calling for air strikes to set up a
"no-fly" zone came under attack by a warplane for a third day as
Muammar Gaddafi tried to loosen the opposition's expanding grip
on a key coast road. []
Eastern-based rebels told Reuters they were open to talks
only on Gaddafi's exile or resignation following attacks on
civilians that have brought global condemnation and triggered a
probe at the war crimes court.
Commerzbank analyst Carsten Fritsch said nobody now expected
Venezuelan President Hugo Chavez's proposals for an
international panel to negotiate an end to the turmoil to work.
"The rebel leader has rejected the plan and the continued
air attacks by Gaddafi's forces on the rebel strongholds give
little reason for the rebels to return to the table," he said.
SAUDI ARABIA
The market is also focusing on the Shi-ite protests in Saudi
Arabia, although Christophe Barret, global oil analyst at Credit
Agricole Corporate and Investment Bank, said he thought the
risks were exaggerated.
"Saudi Arabia is the main risk in the region -- it has all
the spare capacity, and if there is unrest and production
disruption then it means an explosion in oil prices. But I think
the risk is an exaggeration," he said.
He argued there were always problems between the Shi-ites
and the Sunnis. "I don't think it will go like Libya, but the
Eastern Province is a significant oil producing province of
Saudi Arabia so that is why everyone is looking at it."
Unrest continues in other parts of the region. Shi'ite
Muslim rebels in northern Yemen said the military had fired
rockets at their anti-government protests. []
In Bahrain several people were reported hurt in fighting
between Sunni and majority Shi'ite Muslims. []
Libya's oil output has fallen to 700,000-750,000 barrels per
day (bpd) from normal levels of 1.6 million bpd as most foreign
oil workers have taken flight, according to Shokri Ghanem, the
head of Libya's state-owned oil company. []
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Reuters Insider show on Libyan oil company head interview:
http://link.reuters.com/jys38r
Graphics showing:
Middle East unrest http://r.reuters.com/nym77r
Oil price shocks http://r.reuters.com/qes28r
Countries most reliant on oil http://r.reuters.com/dux28r
Brent and WTI open interest
http://graphics.thomsonreuters.com/AS/1/NT_110403075320.jpg
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The U.S. dollar traded flat against a basket of currencies
<.DXY> as the euro strengthened following the European Central
Bank's hawkish comments about rate rises on Thursday. A weaker
dollar is supportive for oil prices.
The market is looking to U.S. non-farm payrolls data due
later on Friday, which are expected to have risen in February
after being held down by extreme winter weather in January.
<ECONUS>
Employment is expected to have increased by 185,000, which
would be the largest gain in almost a year.
"If we see some strong numbers, that could give some further
support," said Commerzbank's Fritsch.
(Additional reporting by Florence Tan; editing by James Jukwey)
