* Libya declares force majeure on oil product exports
* Some Libyan production shut in
* Eastern Libya breaks free from Gaddafi's control
* Saudi says OPEC ready to make up for shortages
(Recasts, updates prices, market activity throughout,
changes dateline from LONDON)
NEW YORK, Feb 22 (Reuters) - Brent crude rose and U.S. oil
hit a 2-1/2 year high on Tuesday as the revolt in Libya
disrupted the OPEC nation's supplies and raised concern unrest
could to other oil producing countries in the region.
More than 8 percent of Libya's 1.6 million barrels per day
(bpd) of oil production has been shut down by the political
violence, with Italian ENI <ENI.MI> and Spain's Repsol shutting
in output. []
Trade sources said the country's marine oil terminals were
disrupted by a lack of communications as rebel soldiers said
the eastern region of the country had broken free from Muammar
Gaddafi. [] Libya also declared force majeure on all
oil product exports, traders said. []
Oil gave up some early gains after Saudi Arabian Oil
Minister Ali al-Naimi said that the Organization of the
Petroleum Exporting Countries would be ready to meet any
shortage from a supply disruption. []
Brent crude <LCOc1> traded up 76 cents to $106.50 a barrel
at 11:44 a.m. EST (1644 GMT), off earlier highs of $108.57 a
barrel. Brent hit a 2-1/2 year high of $108.70 a barrel on
Monday.
U.S. crude <CLc1> for March delivery, which expires at the
end of the session, rose $5.65 to $91.85 a barrel, after
touching $94.49 a barrel, which was the highest level since
October 2008. The more actively traded April contract gained
$5.15 to trade at $94.86 a barrel.
The stronger gains in U.S. crude was partly explained by
the fact that while the contract was active in electronic
trading on Monday, there was no settlement as the exchange in
New York was closed for the Presidents Day holiday.
"Geopolitical events have sparked a move higher as oil
prices have rocketed on the headlines out of Libya," said Chris
Jarvis, president of Caprock Risk Management in Hampton Falls,
New Hampshire.
The following lists key facts regarding Libya's oil
industry:
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Libyan oil map: http://r.reuters.com/jem28r
Production and export graphics:
http://graphics.thomsonreuters.com/11/02/LibyaOil_SB.html
FACTBOX-Libya oil output,exports,customers []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Saudi Arabia's Naimi, speaking on the sidelines of the
International Energy Forum in Riyadh, said worldwide oil spare
oil capacity was between 5-6 million bpd. []
(Reporting by Matthew Robinson, Gene Ramos, David Sheppard in
New York; Claire Milhench in London and Francis Kan in
Singapore; Editing by David Gregorio)
