* Libyan output down more than 25 pct - Reuters calculation
* ENI estimates Libyan output has fallen by 1.2 mln bpd
* Saudi Arabia in "active talks" to meet Libya shortfall-FT
* Brent reaches almost $120, US crude over $100, then slip
(Updates detail, prices)
By Christopher Johnson
LONDON, Feb 24 (Reuters) - Oil surged more than 7.5 percent
to its highest since August 2008 on Thursday on concern that
uprisings in Libya could spread to other major oil producers in
the Middle East, including Saudi Arabia.
Brent crude oil for April <LCOc1> spiked up $8.54 a barrel
to a peak of $119.79 before easing to around $114.40 by 1450
GMT. U.S. crude futures for April <CLc1> rose as high as
$103.41, the highest September 2009. They were up $1.70 at
$99.80 at 1450 GMT.
Unrest in the world's 12th-biggest exporter has cut at least
400,000 barrels per day (bpd) from Libya's 1.6 million bpd
output, according to Reuters calculations. []
ENI Chief Executive Paolo Scaroni said Libyan output had
fallen much more dramatically, estimating it was putting 1.2
million barrels per day less into the market. []
The Financial Times quoted an unnamed senior oil official on
its website as saying Saudi Arabia was in "active talks" with
European oil refiners who might be hit by the disruption in
Libyan exports. []
That would be the clearest sign yet that OPEC's most
influential member is readying action to respond to the cut in
Libyan output.
The kingdom had asked refiners "what quantity and what
quality of oil they want", the FT quoted the senior Saudi oil
official saying on condition of anonymity.
Goldman Sachs said the spread of unrest to another producing
country could bring oil shortages and require demand rationing.
"The market cannot accommodate another disruption, in our
view," analyst Jeffrey Currie said in a research note.
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Graphics on crude prices, volumes and outlook:
http://graphics.thomsonreuters.com/WT/20112402104605.jpg
http://graphics.thomsonreuters.com/WT/20112402111227.jpg
http://graphics.thomsonreuters.com/AS/0810/NT_112402165534.jpg
U.S. oil price rise graphic: http://link.reuters.com/byv28r
Unrest in MidEast, N. Africa: []
Analysis on impact on Libyan oil sector: []
Factbox on Libyan oil and gas: []
Interactive factbox http://link.reuters.com/puk87r
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EYES ON SAUDI
Major banks joined the chorus of calls on Thursday for OPEC
to act quickly on fears the strong oil prices could derail the
fragile economic recovery. []
Barclays Capital <BARC.L> and Citi <C.N> said it saw no
downward pressure on prices until more oil comes to the market.
"Unless we see an explicit move from ... producer countries,
i.e. Saudi Arabia, I don't think there is necessarily going to
be any downward pressure on prices," said BarCap analyst Amrita
Sen. []
Eugen Weinberg, Commerzbank's head of commodities research,
said the situation called for "some extraordinary measures".
"This is an opportunity for OPEC to prove whether they are
really able to (step) into this production gap," he said.
Eastern areas holding much of Libya's oil have slipped from
the control of Muammar Gaddafi, who has unleashed a bloody
crackdown on protesters to keep his 41-year grip on power.
The cuts in Libyan oil output represent the first disruption
to supply as a direct result of protests that have swept through
the oil-producing regions of north Africa and the Middle East.
The concern for oil markets is how unrest might affect Saudi
Arabia, which not only pumps around 10 percent of the world's
oil but is also the only holder of significant spare crude
production capacity that can be used to plug outages.
The FT report said Saudi Arabia was waiting for a response
from European customers before making a decision on whether or
not to increase output. It said options included pumping more
oil through an East-West pipeline or boosting shipments to Asia
in order to free up West African crude for Europe.
Without Saudi Arabia's 4 million bpd of spare capacity,
there is little margin in the global oil supply system.
To date, Saudi Arabia has escaped popular protests that have
raged across the Arab world, toppling the leaders of Egypt and
Tunisia and spreading as far as Saudi neighbour Bahrain.
Saudi King Abdullah has unveiled benefits for Saudis worth
$37 billion in an apparent bid to insulate the oil exporter from
protests in the region. However, hundreds of people have backed
a Facebook page campaigning for a 'day of rage' across the
kingdom on March 11 to demand reforms and greater democracy.
Weekly U.S. oil inventory data from industry group API
showed on Wednesday that petroleum stocks had risen by 163,000
barrels last week, after analysts polled by Reuters had forecast
a bigger rise of 1.2 million barrels. [] []
Distillate inventories fell a less-than-expected 534,000
barrels and gasoline supplies fell 1.6 million barrels, API data
showed, bucking analyst expectations for a rise.
The U.S. Energy Information Administration's weekly
inventory data were due to be released at 1600 GMT on Thursday.
(Additional reporting by Nia Williams, Emma Farge, Claire
Milhench and Dmitry Zhdannikov in London; Editing by Jason
Neely)
