UPDATE 5-Oil prices climb as Libya unrest stokes concern

                                
 * Several firms halt output in Libya [ID:nLDE71M16J]
                                
 * Concern other big producers could suffer supply outages
                                
 * Coming Up: U.S. Jan existing home sales data, API data
                                
 
                                
 (Adds background, quotes, updates prices)
                                
 By Zaida Espana
                                
 LONDON, Feb 23 (Reuters) - Oil prices climbed on Wednesday
as turmoil in Libya fuelled fears that unrest could spread to
other oil-producing nations and choke supplies.
                                
 Brent crude futures <LCOc1> climbed $2.91 to $108.68 a
barrel by 1415 GMT.
                                
 Futures on U.S. light crude, also known as WTI, <CLc1> were
$1.06 firmer at $96.48 a barrel at the same time, the highest
level since October 2008.
                                
 Prices gained support as Austria's OMV <OMVV.VI> said on
Wednesday it might be heading for a full production shutdown in
Libya; adding to earlier comments by Total <TOTF.PA>, Repsol
<REP.MC>, Eni <ENI.MI> and BASF <BASFn.DE> that they were either
slowing or stopping output.
                                
 "If we lose Libyan production, then you will have to replace
around 1.6 million barrels per day of very good quality crude,
which would introduce logistical implications and have a cost,"
Credit Agricole CIB analyst Christophe Barret said.
                                
 The disruption in Libya, which pumps 1.6 million barrels per
day (bpd) or nearly 2 percent of global supply [ID:nLDE71L11T],
marks the first cut in oil supplies related to the recent wave
of protests in North Africa and the Middle East.
                                
 "People are scared to lose a producer that pumps very good
quality crude. Companies are cutting production at the fields
and there are difficulties at the port, so products trade is
also disrupted," he added.
                                
 The disruption could push up Brent to a greater extent
because of its tighter availability and geographical proximity
to the unrest, Commerzbank analysts said.
                                
 Governments across the world moved to send planes and ships
to evacuate citizens from Libya, whose leader Muammar Gaddafi
has vowed to crush a revolt against his 41-year rule.
[ID:nLDE71M1AH]
                                
 Between 300,000-400,000 barrels per day (bpd) of Libyan
output has been shut down, according to Reuters calculations
[ID:nLDE71M16J], while Barclays analyst Amrita Sen said in a
note that around 1 million bpd of Libyan crude oil production is
likely to have been shut in.
                                
 Focus was also on top exporter Saudi Arabia, where ruling
King Abdullah unveiled a package of benefits worth billions of
riyals to mark his return on Wednesday after months of medical
treatment abroad. [ID:nLDE71M11C] [ID:nLDE71M1JL]
                                
 Jittery investors are worried about further supply
disruption if protests spread in the country, which supplies
around 10 percent of the world's oil and holds most of the
world's spare capacity. On Tuesday, Saudi stopped short of
pumping more oil to calm markets, saying prices were driven by
fear. [ID:nLDE71L1IF]
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  Middle East unrest graphic      http://r.reuters.com/nym77r
  Analysis on long-term impact on Libyan oil: [ID:nL3E7DN0AI]
  Factbox on Libyan oil and gas:              [ID:nLDE71K0RV]
  Libyan oil map:                 http://r.reuters.com/jem28r
  Interactive factbox          http://link.reuters.com/puk87r
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 
                                
 OIL SUPPLIES EYED, U.S. STOCKS AWAITED
                                
 While protests in Saudi Arabia have so far been low key,
Shi'ites in neighbouring Bahrain are demonstrating against the
Sunni-led government, fanning worries this could spill over to
the Shi'ite minority in Saudi's oil-producing eastern province.
                                
 "The importance of Bahrain is perhaps being underplayed
currently. While not a major oil producer, Bahrain's impact on
the oil market reverberates through its importance in Saudi
Arabia," Barclays Capital analysts Helima Croft and Amrita Sen
said in a note.
                                
 The International Energy Agency's (IEA) executive director
Nobuo Tanaka said prices above $100 per barrel for the rest of
the year could drag the global economy back into a repeat of the
2008 economic crisis. [ID:nLDE71L1KV]
                                
 Analysts said U.S. light crude futures remained well
supported following the roll of the contract, although a
potential build-up of weekly U.S. crude oil stockpile data due
later could pressure prices. [EIA/S]
                                
 "The fact that WTI has risen further is mainly related to
the contractual rollover, as the new front month contract was $2
higher than the expiring contract," Commerzbank analyst Carsten
Fritsch said.
                                
 On the data front, investors await the January reading of
existing U.S. home sales at 1500 GMT, while U.S. inventory data
from both American Petroleum Institute and EIA will be delayed a
day after Monday's Presidents Day holiday.
                                
 Analysts polled by Reuters expect crude inventories in the
U.S. rose for the sixth consecutive time last week, ahead of the
API report due at 2130 GMT and the EIA on Thursday. [EIA/S]
 (Additional reporting by Francis Kan in Singapore; editing by
Jane Baird)