* U.S. crude rises above $108.50, highest since September
2008
* Iran oil min says no need for OPEC emergency meeting
* Technicals-U.S. oil may retrace to $106.30[]
(Updates prices)
By Seng Li Peng
SINGAPORE, April 4 (Reuters) - Brent crude rose over $119 a
barrel and U.S. crude hit a 2-1/2-year high on Monday at more
than $108 as unrest in the Middle East and North Africa
triggered concern that supplies could be dented while economic
growth bolsters demand.
Comments from Iran's oil minister that there was no need for
OPEC to hold an extraordinary meeting to address high oil prices
also supported sentiment.
Iran is OPEC's leading oil price hawk and holder of the
organization's rotating presidency in 2011. []
ICE Brent <LCOc1> rose 77 cents to $119.47 a barrel at 0702
GMT, after trading as high as $119.54, near the 2-1/2-year peak
of $119.79 hit on Feb. 24.
U.S. crude <CLc1> was up 68 cents to $108.62 a barrel at
0702 GMT, after touching $108.74 earlier in the session --
highest since September 2008.
"We have supply concerns which we haven't had for the last
few years and this is mostly related to Libya now," said John
Vautrain of energy consulting firm Purvin and Gertz.
"The tension has disrupted crude supplies, and that is
affecting Europe."
The government of Libya -- the world's 17th-largest oil
producer and Africa's third-largest -- sent an envoy to Greece
on Sunday to discuss an end to fighting, but gave no signs of
any major climbdown in a war that has ground to a stalemate
between rebels and forces loyal to Muammar Gaddafi.
[]
Underlining the plight of civilians in western Libya, a
Turkish ship that sailed into the besieged city of Misrata to
rescue some 250 wounded had to leave in a hurry after crowds
pressed forward on the dockside hoping to escape.
In Yemen, two protesters died and hundreds were hurt on
Sunday when police used live rounds, tear gas and batons to try
to break up protests against President Ali Abdullah Saleh, who
called for an end to weeks of unrest, signalling he has no
intention of resigning soon. []
Unrest also reigned in other parts of the Middle East, with
the Gulf Arab states voicing deep concern over what they called
Iranian interference in their affairs after Iran objected to the
despatch of Saudi troops to Bahrain and a spying row raised
tensions. []
Bahrain has seen the worst unrest since the 1990s after
mostly Shi'ite protesters took to the streets in February,
inspired by uprisings that toppled leaders in Egypt and Tunisia,
to demand a bigger say in the Sunni-ruled country.
Upcoming elections in OPEC member Nigeria are also coming
into focus. []
STRONG DEMAND GROWTH
Oil prices also got a boost from Friday's strong U.S.
payrolls data. U.S. employment grew firmly for a second straight
month in March and the jobless rate hit a two-year low of 8.8
percent, confirming the labor market was strengthening and
fueling optimism about oil demand.[]
The positive data also pushed Asian shares to
their highest in nearly 3 years on Monday. []
"We have a bigger story on demand side. There is strong
demand growth this year, and that is a reflection of the
economic prospects of the world," added Vautrain.
"On top of that, we have the unusual circumstances of the
Japanese power outage which had taken out all the nuclear
plants. That will tend to put more load on oil-fired generators
going forward."
Japan's government on Monday told the operator of the
crippled Fukushima nuclear plant to move quickly to stop
radiation seeping into the ocean as desperate engineers resorted
to bath salts to help trace a leak from one
reactor.[]
Vautrain noted that while the oil-fired generators in Japan
were out too after the March 11 earthquake and tsunami, there
were prospects of more being restored over time.
"That would probably put up the (crude) price more later."
(Editing by Ed Lane)
