* Crude oil prices jump on Libyan unrest, protests in region
* Tribal leader threatens to halt oil exports
* Striking workers stop production at Nafoora - Al Jazeera
(Updates prices, adds background)
By Jessica Donati
LONDON, Feb 21 (Reuters) - Brent crude oil futures rose to a
2-1/2 year high above $105 a barrel on Monday and U.S. prices
rallied by over $3 as clashes in Libya threatened to disrupt oil
flows from the OPEC member.
Brent futures <LCOc1> were up $2.01 at $104.53 a barrel by
1047 GMT, after breaking above last week's peak of $104.52 to
touch $105.08, the highest since September 2008.
U.S. crude oil <CLc1> prices were up by $3.05 at $89.25 a
barrel around the same time.
One of the bloodiest revolts in the region hit the oil
exporter as scores were killed in anti-government protests in
Tripoli, tribal leaders spoke out against long-time leader
Muammar Gaddafi and army units defected to the opposition.
[]
The leader of the Al-Zuwayya tribe in eastern Libya said oil
exports to the West would be cut off unless authorities stopped
violence against protesters. []
"Libya is a significant producer and exporter of good
quality crude oil and threats by the tribal leader to stop
production is worrisome," said Christophe Barret, an oil analyst
at Credit Agricole Corporate and Investment Bank.
Libya produced 1.58 million bpd in January and major
disruptions in the oil-rich north African country would present
serious strategic challenges for Western governments.
Italy looks set to bear the brunt of the fall-out if Libya
descends further into chaos, but on Monday Eni Societa per
Azioni <ENI.MI> said output there has proceeded normally over
the past 24 hours. []
Traders are watching events carefully in OPEC's second
largest oil producer Iran for signs of escalating tensions. Iran
arrested the daughter of former president Akbar Hashemi
Rafsanjani on Sunday for taking part in a banned opposition
rally, the official IRNA news agency reported. []
"Iran is the next big worry," Barret added, referring to
market concern over the wave of popular unrest in north Africa
and the Middle East which has already toppled presidents in
Tunisia and Egypt.
EXPORT CONCERNS
Oil prices extended their rally on Monday after striking
workers halted production at Libya's Nafoora oilfield, Al
Jazeera television reported on Monday without giving further
details. []
"Violence in Libya is the main driver of the price rise. An
influential tribal leader has threatened to cease oil shipments
to the West within 24 hours if the violence against protesters
does not end," said analysts at Commerzbank in a report.
Protesters in Libya were told leader Muammar Gaddafi would
enforce security at any price and fight until the last man
standing.
Oil major BP said it has suspended preparations for
exploratory drilling for oil and gas in western Libya as a
result of growing unrest there.
Austrian oil and gas group OMV <OMVV.VI> said operations in
Libya were unaffected by the unrest but it was withdrawing
expatriate staff from the country. []
(Reporting by Jessica Donati; editing by Keiron Henderson)
