* Libyan oil output falls further amid clashes in east
* U.S. API data shows fall in crude, gasoline stocks
* Coming Up: EIA weekly stocks, 1530 GMT
(Adds Libya oil official, updates prices)
By Jessica Donati
LONDON, March 2 (Reuters) - Brent crude rose back close to
two-and-a-half year highs on Wednesday as Libya warned of higher
oil prices due to the crisis and its government forces fought
rebels in the oil-rich east. []
Brent crude for April <LCOc1> edged up 4 cents to $115.45 a
barrel at 1229 GMT against the recent peak of $119.79 hit on
Feb. 24.
U.S. April crude futures <CLc1> rose by 31 cents to $99.94 a
barrel.
Shokri Ghanem, chairman of Libya's National Oil Corporation,
told Reuters in an interview that Libya's troubles had created
its worst energy crisis in decades and supply cuts to world
markets could push oil above $130 a barrel in the next month if
troubles persist. []
Ghanem said crude oil output had dropped to 700,000-750,000
barrels per day, from a pre-crisis 1.6 million bpd, after the
flight of most of the foreign workers who make up about 10
percent of the Libyan energy industry's labour forces.
"The question is what will be the outcome over the next few
days -- will there be a full stoppage as the evacuation of
personnel from Libya continues?" said Harry Tchilinguirian, head
of commodity market strategy at BNP Paribas. "What's at stake is
the number of barrels in the Middle East."
Some oil exports continued.
Two Greek tankers left the Libyan port of Es Sider on
Tuesday, but concerns about potential violations of recently
imposed U.S. sanctions against Libya left a cargo sitting off
the coast of Texas and Louisiana in the United States.
[] []
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Middle East unrest graphics http://r.reuters.com/nym77r
Who is in control in Libya http://r.reuters.com/jem28r
Map of control in Libya http://r.reuters.com/fug38r
Countries most reliant on oil http://r.reuters.com/dux28r
Calculator: Oil price impact on GDP
http://r.reuters.com/jux28r
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RISK OF CONTAGION
Governments in Yemen, Oman, Iran and Iraq have had clashes
with protesters over the past fortnight as popular unrest has
spread in the region holding more than 60 percent of the world's
reserves.
"Oil prices are subject to the ebb and flow of news out of
the Middle East ... there's a good chance of Brent rising to
$120 over the next couple of days," said Michael Hewson, a
market analyst at CMC markets.
Last week Brent crude futures rallied to 2-1/2-year peak
over $118 on disrupted supply from Libya, but fell back as a
boost in Saudi Arabian output was expected to fill in for the
loss of Libyan oil.
In the United States a surprise fall in crude inventories
and a sharp drop in gasoline stocks was show in data released on
Tuesday by the American Petroleum Institute (API). []
An Energy Information Administration report due at 1530 GMT
on Wednesday is expected to show a 700,000 barrel rise in crude
inventories according to a Reuters poll. []
"Given the geopolitical tensions we are seeing in the Middle
East, conventional bets on supply and demand... are off. The
market's focus is on the bigger picture," said Tchilinguirian.
(Additional reporting by Florence Tan, editing by William
Hardy)
