* Protests planned for Libyan capital after prayers
* Shi'ites stage protests in Saudi oil province
* Coming Up: U.S. Feb non-farm payrolls, 1330 GMT
(Updates prices, adds fresh quotes)
By Claire Milhench
LONDON, March 4 (Reuters) - Crude oil rose on Friday, with
Brent above $115 a barrel, as Libyan rebels vowing "victory or
death" advanced towards a major oil terminal, and on protests in
Saudi Arabia's oil-producing Eastern Province.
By 1111 GMT, Brent crude futures for April delivery <LCOc1>
were up 75 cents to $115.54 a barrel, after earlier touching
$116.20. U.S. crude futures for April <CLc1> rose 64 cents to
$102.55 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, opponents of Libyan leader Muammar Gaddafi
prepared to march in the capital after Friday prayers, at about
1300 GMT. [] They said they expected government
forces to respond with a violent crackdown.
Rebels also advanced on the major oil terminal of Ras Lanuf,
with Al Jazeera television reporting that battles were under way
in the eastern oil port. Earlier, an air strike had missed a
rebel-held eastern military base which houses a big ammunition
store. [] []
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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Simon Wardell, oil analyst at IHS Global Insight,
attributed the morning rally partly to oil prices playing catch
up after Thursday when positive economic news lifted equities.
"Oil suffered a bit in comparison, but it came back to par
this morning," he said. "Now it is settling back down."
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.
"(ECB chairman) Mr Trichet did surprise by announcing an
almost certain increase in rates from 1.00 percent to 1.25
percent at the next meeting in April (much earlier than
expected)," Petromatrix analyst Olivier Jakob said in a note.
The market is now looking to U.S. non-farm payrolls data due
later on Friday. Employment is expected to have increased by
185,000 in February, which would be the largest gain in almost a
year. <ECONUS>
"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)
