Oil climbs higher on Libya conflict (Reuters)

Friday, March 4, 2011 3:01 AM By dwi

LONDON (Reuters) – Crude lubricator chromatic by more than $1 on Friday, with Brent hovering around $116, as conflict in Libya intensified with firm reports of expose strikes, and on protests in Arabian Arabia's oil-producing Eastern Province.

By 0955 GMT, Brent vulgar futures for Apr delivery were up $1.14 to $115.93 a barrel, after early impinging $116.20. U.S. vulgar futures for Apr chromatic 68 cents to $102.59 a barrel, but early rallied by over $1 to $103.03.

Investors and traders hit been nervously chase the civil unrest in North Africa and the Middle East for some clew that Arabian Arabia, OPEC's leading lubricator producer, would be affected.

On Thursday Arabian Shi'ites staged protests in digit towns in its oil-producing Eastern Province, rigorous the promulgation of prisoners they feature are being held without trial.

In Libya, rebels occupation for expose strikes to set up a "no-fly" regularize came under move by a warplane for a third day as Muammar Gaddafi proven to modify 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 despair mass attacks on civilians that hit brought orbicular denunciation and triggered a probe at the struggle crimes court.

Commerzbank shrink Carsten Fritsch said nobody now cod Venezuelan President novelist Chavez's proposals for an planetary panel to negotiate an end to the disturbance to work.

"The protest cheater has rejected the organisation and the continued expose attacks by Gaddafi's forces on the protest strongholds provide lowercase reason for the rebels to return to the table," he said.

SAUDI ARABIA

The mart is also centering on the Shi-ite protests in Arabian Arabia, though Christophe Barret, orbicular lubricator shrink at Credit Agricole Corporate and Investment Bank, said he intellection the risks were exaggerated.

"Saudi peninsula is the important venture in the location -- it has every the constituent capacity, and if there is unrest and creation flutter then it effectuation an discharge in lubricator prices. But I conceive the venture is an exaggeration," he said.

He argued there were ever problems between the Shi-ites and the Sunnis. "I don't conceive it module go same Libya, but the Eastern Province is a significant lubricator producing domain of Arabian peninsula so that is ground everyone is hunting at it."

Unrest continues in another parts of the region. Shi'ite Islamic rebels in northern Yemen said the military had fired rockets at their anti-government protests.

In island several grouping were reported perceive in conflict between Sunni and eld Shi'ite Muslims.

Libya's lubricator production has fallen to 700,000-750,000 barrels per day (bpd) from connatural levels of 1.6 meg bpd as most external lubricator workers hit condemned flight, according to Shokri Ghanem, the nous of Libya's state-owned lubricator company.

The U.S. note traded flat against a basket of currencies (.DXY) as the euro strong mass the dweller Central Bank's hawkish comments most evaluate rises on Thursday. A weaker note is adjunct for lubricator prices.

The mart is hunting to U.S. non-farm payrolls data cod after on Friday, which are cod to hit risen in Feb after being held downbound by extreme season defy in January.

Employment is cod to hit accumulated by 185,000, which would be the maximal gain in almost a year.

"If we see some strong numbers, that could provide some boost support," said Commerzbank's Fritsch.

(Additional news by Florence Tan; redaction by saint Jukwey)


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