* Oil gains as Libyan unrest helps push prices higher
* U.S. dollar slumps near record low against Swiss franc
* U.S. bonds rise as safe-haven allure returns
(Adds oil quotes, details)
By Herbert Lash
NEW YORK, Feb 23 (Reuters) - U.S. oil prices topped $100 a
barrel for the first time since October 2008 and investors
sought safety in bonds, gold and the Swiss franc on Wednesday
as the uprising in Libya fanned fears of inflation and slower
growth.
In London, Brent crude futures climbed above $110 a barrel
as the first cut in oil supplies related to the recent wave of
political violence in North Africa fueled concerns in financial
markets. For details see: []
The U.S. dollar slid just shy of an all-time low to its
weakest level of the year against the Swiss franc and gold rose
above $1,400 an ounce in Europe as turmoil in Libya led
investors to buy safe-haven assets. []
[]
"Oil prices are not likely to fall any time soon," said
Shelley Goldberg, a commodities and energy strategist at
Roubini Global Economics in New York.
"We'll see higher volatility that makes it possible for WTI
oil to touch highs of $110 or $115 a barrel this year," she
said, referring to the U.S. oil benchmark West Texas
Intermediate.
Thousands of Libyans celebrated the liberation of the
eastern city of Benghazi from the rule of Muammar Gaddafi.
Italy's foreign minister said as many as 1,000 people have been
killed since the revolt began around a week ago.
[]
Up to 25 percent of Libya's daily crude production of about
1.6 million barrels has been shut down, according to Reuters
calculations, helping to pressure oil prices.
U.S. light sweet crude oil <CLc1> pared gains after hitting
$100 a barrel, slipping to $98.34, up $2.92 for the day. Brent
<LCOc1> rose $5.53 to $111.30.
Despite the surge to the psychological barrier of $100, the
drag on the economy still might not be that great.
"Although higher oil prices at these levels would
negatively impact the economy, material damage wouldn't likely
occur until we moved above the $120 level," Chris Jarvis,
president of Caprock Risk Management in Hampton Falls, New
Hampshire.
U.S. Treasury debt briefly turned negative after an auction
of $35 billion in five-year notes drew a higher yield than
investors expected. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
3/32 in price to yield 3.45 percent.
U.S. stocks accelerated their slide after oil prices pushed
to $100 a barrel, as tech shares sank and fueled worry of a
deeper market correction.
The Dow Jones industrial average <> was down 109.97
points, or 0.90 percent, at 12,102.82. The Standard & Poor's
500 Index <.SPX> was down 9.38 points, or 0.71 percent, at
1,306.06. The Nasdaq Composite Index <> was down 37.76
points, or 1.37 percent, at 2,718.66
The MSCI world equity index <.MIWD00000PUS> was down 0.6
percent, while the pan-European FTSEurofirst 300 <> index
of top shares closed down 1.1 percent.
Traders were focused on what top OPEC exporter Saudi Arabia
will do, even after its oil minister have said the kingdom and
other members of the Organization of Petroleum Exporting
Countries will act should a supply shortfall develop.
[]
"I don't think Libya alone will take us to $150 a barrel
but if unrest spreads in the Gulf countries we could easily get
there," said Edward Meir, analyst at MF Global in New York.
Copper, often a barometer of economic demand, fell to the
lowest levels in nearly a month on worries inflation could slow
down global economic recovery. The metal has slipped nearly 7
percent from record highs at $10,190 a tonne earlier in the
month []
Spot gold prices <XAU=> rose $14.56 to $1,412.10 an ounce.
The euro <EUR=> was up 0.66 percent at $1.3743. The dollar
was down against a basket of major currencies, with the U.S.
Dollar Index <.DXY> off 0.43 percent at 77.432.
(Additional reporting by Rodrigo Campos, Chris Reese and Julie
Haviv in New York; Jessica Mortimer, Zaida Espana, William
James, Joanne Frearson, Jan Harvey and Melanie Burton in
London; Writing by Herbert Lash; Editing by Andrew Hay)
