* Brent crude nears $120 a barrel as Libya output falls
* Oil leaps, specter of inflation spooks markets ,
* Swiss franc hits record high as US dollar falls broadly
(Refiles to drop surplus word in first paragraph)
By Herbert Lash
NEW YORK, Feb 24 (Reuters) - Crude oil prices soared to
almost $120 a barrel and the safe-haven Swiss franc hit a
record high on Thursday as the turmoil in Libya kept markets
tense, but gold and Wall Street stocks were steady.
The escalating violence in Libya, home to Africa's largest
proven oil reserves, lifted benchmark Brent crude oil to its
highest price since August 2008 and kindled investor fears of
an inflationary spike that might slow global economic growth.
For details see: []
The relentless surge in oil prices stung the U.S. dollar
against major currencies, boosting the Swiss franc and to a
lesser extent the Japanese yen as often happens during times of
uncertainty. []
Copper, often a harbinger of economic sentiment, fell to
one-month lows but gold steadied near seven-week highs as
investor fears over oil-induced inflation were partially
offset by pockets of profit-taking. []
Brent crude futures for April delivery <LCOc1> spiked to
$119.79 a barrel before easing to $114.55, up $3.30 on the day.
Spot gold prices <XAU=> rose slightly to $1,412.40 an ounce,
up just $2.50.
"There are concerns about what is going to happen in Libya
and what is going to happen to oil prices," said Standard Bank
analyst Leon Westgate. "Higher oil prices are generally fairly
negative on growth and there is a risk of contagion."
Forces loyal to Muammar Gaddafi launched a counter-attack
but rebels threatened the Libyan leader's grip on power by
seizing important towns close to the capital and bringing the
tide of rebellion ever closer to his power base.
[]
Disruption to Libya's output has cut at least 400,000
barrels per day of the country's 1.6 million barrels per day
production, Reuters calculations show. []
Italian oil company ENI said the decline was greater,
estimating 1.2 million barrels of oil had been removed from the
market.
Wall Street stocks steadied after two days of falls.
The Dow Jones industrial average <> was down 0.69
points, or 0.01 percent, at 12,105.09. The Standard & Poor's
500 Index <.SPX> was down 0.27 points, or 0.02 percent, at
1,307.13. The Nasdaq Composite Index <> was up 4.98
points, or 0.18 percent, at 2,727.97.
U.S. Treasury debt prices rose with continued support from
safe-haven buying, and some analysts forecast yields to fall
even lower in the near term. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
9/32 in price to yield 3.45 percent.
The euro <EUR=> was up 0.34 percent at $1.3793. Against the
yen, the dollar <JPY=> was down 0.87 percent at 81.77.
(Additional reporting by Gertrude Chavez-Dreyfuss in New York;
Amanda Cooper, Naomi Tajitsu, Christopher Johnson, Harpreet
Bhal in London ; Writing by Herbert Lash)
