* At least three firms shut in Libyan output
* Gas pipeline and oil export terminals disrupted
* Concern other big producers could suffer supply outages
* For a 24-hour technical outlook on oil: http://graphics.thomsonreuters.com/WT/20112302083814.jpg
* Coming up: January U.S. existing home sales data
By Francis Kan
SINGAPORE, Feb 23 (Reuters) - U.S. crude futures climbed to
a 2-1/2-year peak on Wednesday on concern that unrest in Libya
could spread to other top oil producers in the region and cut
more output.
Violent clashes in Libya have resulted in at last three oil
companies halting output in Africa's third-largest producer.
Libya pumps 1.6 million barrels per day (bpd), or nearly 2
percent of global supply.
The disruptions mark the first reduction in oil supply
stemming from a wave of protests that have swept through the
oil-producing Middle East and North Africa. Investors fear for
the potential impact on the flow of oil from top exporter Saudi
Arabia if it suffers similar unrest.
U.S. crude rose as high as $96.08 a barrel, the
highest level since October 2008. By 0355 GMT, the contract had
trimmed gains to trade at $95.70, up 28 cents on the day.
Brent crude rose 78 cents to $106.56 a barrel. On
Monday, Brent hit a 2-1/2-year high of $108.70.
"Even if Libya completely shuts down, there isn't a supply
issue. But the (U.S. crude) could go to $100, given the
potential for this contagion to spread to Saudi Arabia," said
Jonathan Barratt, managing director of Commodity Broking
Services in Sydney.
To date, protests in Saudi have been low key. But majority
Shi'ites in neighbouring Bahrain are protesting against the
Sunni government and there is concern this could spill over to
the Shi'ite minority living in Saudi Arabia's oil-producing
eastern province.
A pipeline pumping Libyan gas to Italy was also closed, and
operations at Libya's export terminal operations disrupted.
Libyan leader Muammar Gaddafi has refused to step aside despite
the growing revolt and threatened tougher action against
protesters in a defiant speech on Tuesday.{ID:nLDE71L2LE]
International Energy Agency (IEA) chief economist Fatih
Birol said on Tuesday that oil prices were in the danger zone
and could rise further if turmoil continues in the Middle East.
"The global economy is more fragile now than it was in 2008.
Growth has been driven by stimulus packages and austerity
measures. I don't see it being able to absorb a rise to $140
like it did two years ago," Barratt said.
Brent crude has risen more than 13 percent so far this year.
U.S. crude is up over 2 percent on the year, but is over $50
below its 2008 high of $147.27.
"(Brent) prices have broken through the $105 resistance, and
if it breaks $110, it could easily move to $120," said Ken
Hasegawa, a commodity derivatives manager at Newedge brokerage
in Tokyo.
NO MORE CRUDE FROM SAUDI
Top exporter Saudi Arabia on Tuesday stopped short of
pouring more oil on to markets, telling visiting consumer
nations prices were driven by fear.
The kingdom could ramp up its oil production enough within
one month to replace all of Libya's crude exports if growing
strife in the African nation cuts off its oil shipments, a
senior U.S. government energy official said on Tuesday.
Saudi Arabia supplies around 10 percent of the world's oil,
but also holds most of the world's spare capacity.
It is the only producer able to respond quickly with large
volumes of oil to compensate for a serious supply outage.
IEA member states would consider releasing oil from their
emergency stocks if supplies were disrupted as a result of
continuing turmoil in the Middle East, Birol said.
The IEA is adviser to 28 industrialised nations on energy
policy.
Asian stocks fell on Wednesday, following Wall Street's
worst performance since August on concerns over the turmoil in
Libya.
(Editing by Clarence Fernandez)
