* Libyan security forces fire shots at Tripoli protestors
* Rebels clash with Gaddafi forces at key oil terminal
* Shi'ites stage protests in Saudi oil province
(Updates prices, protests, U.S. non-farm payrolls data)
By Claire Milhench
LONDON, March 4 (Reuters) - Crude oil rose on Friday, with
Brent staying above $115 a barrel, as Libyan security forces
began a violent crackdown on protesters in Tripoli and clashed
with rebels near the major oil terminal of Ras Lanuf.
By 1409 GMT, Brent crude futures for April delivery <LCOc1>
were up 71 cents to $115.50 a barrel, after earlier touching
$116.30. U.S. crude futures for April <CLc1> rose $1.08 cents to
$102.99 a barrel. The intraday high was $103.57.
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, security forces fired shots and used tear gas to
disperse a protest against Muammar Gaddafi's regime in the
capital Tripoli. Demonstrators began the protest in the city's
eastern district after Friday prayers. []
Meanwhile, rebels advanced on the major oil terminal of Ras
Lanuf, clashing with forces loyal to Gaddafi. []
The head of Libya's rebel National Libyan Council vowed
"Victory or death", in a short speech in the town of Al Bayda in
the rebel-held east of the country. []
A rebel spokesman told Al Jazeera television that rebel
forces will attack Tripoli once a "no-fly" zone is enforced by
international powers. [] He added that rebel forces
had repelled an attempt by Gaddafi forces to seize control of
Brega airport in the rebel-held east.
Barclays Capital analysts said in a note the chances of a
swift resolution in areas of tension had reduced considerably.
"Libyan oil is likely to be lost to the market for an
extended period, tying up considerable amounts of replacement
oil in much longer supply chains, and events in Nigeria, Iraq,
Iran and Bahrain are likely to provide a continuing backdrop of
headline risks," they said.
SAUDI ARABIA
While the market focuses on the Shi-ite protests in Saudi
Arabia, 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. Iraqi
security forces used water cannon and batons to disperse
protesters in the southern oil hub of Basra as thousands of
Iraqis rallied around the nation against corrupt officials and
poor basic services. []
Shi'ite Muslim rebels in northern Yemen said the military
had fired rockets at their anti-government protests.
[] And in Bahrain several people were reported hurt
in fighting between Sunni and majority Shi'ite Muslims.
[]
"Tension in the Middle East is like a runaway train," said
Michael Hewson, an analyst at CMC Markets. "Once it starts it's
very difficult to stop. And if there is a danger that it impacts
the supply chain, people will understandably get nervous."
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.
February U.S. non-farm payrolls rose by 192,000, beating
forecasts of 185,000. [] Private sector jobs rose
222,000, more than expected, and the February jobless rate fell
to 8.9 percent.
Although the numbers confirmed that the economy is
improving, Gene McGillian, an analyst at Tradition Energy in the
United States, said the overnight rally had taken some steam out
of the reaction to the jobs report.
"As long as people keep reading about fighting in Libya and
protests in the Middle East, it keeps the geopolitical risk
premium in the forefront," he said.
(Additional reporting by Florence Tan and Robert Gibbons,
editing by Jane Baird)
