* Venezuelan Libya peace plan seen unlikely to work out
* Shi'ites stage protests in Saudi oil province
* Coming Up: U.S. Feb non-farm payrolls, 1330 GMT
(Adds fresh quotes, updates prices, changes dateline)
By Claire Milhench
LONDON, March 4 (Reuters) - Crude oil rose over $1 on
Friday, with Brent pushing towards $116, as fighting in Libya
intensified with fresh reports of air strikes, and on protests
in Saudi Arabia's oil-producing Eastern Province.
By 0858 GMT, Brent crude futures for April delivery <LCOc1>
were up $1.16 to $115.95 a barrel. U.S. crude futures for April
<CLc1> rose 86 cents to $102.77 a barrel, but earlier had
rallied over $1 to touch $103.03 a barrel.
Investors and traders have been nervously tracking the
progression of the civil unrest in North Africa and the Middle
East for any sign that Saudi Arabia, OPEC's leading oil
producer, would be affected.
On Thursday Saudi Shi'ites staged protests in two towns in
Saudi Arabia's oil-producing Eastern Province, demanding the
release of prisoners they say are being held without trial.
[]
In Libya, a Gaddafi warplane bombed just beyond the walls of
a military base held by rebels in the eastern town of Ajdabiyah
as both sides struggled for control of a strategic coastal road
and oil industry facilities. [][]
Commerzbank analyst Carsten Fritsch confirmed that nobody
now expected Venezuelan President Hugo Chavez's proposals for an
international panel to negotiate an end to the turmoil to work
out.
"The rebel leader has rejected the plan and the continued
air attacks by Gaddafi's forces on the rebel strongholds give
little reason for the rebels to return to the table," Fritsch
said.
The market is also focusing on the Shi-ite protests in Saudi
Arabia, although Christophe Barret, global oil analyst at Credit
Agricole Corporate and Investment Bank, said he thought the
risks were exaggerated.
"Saudi Arabia is the main risk in the region -- it has all
the spare capacity, and if there is unrest and production
disruption then it means an explosion in oil prices. But I think
the risk is an exaggeration," he said.
He argued that there were always problems between the
Shi-ites and the Sunnis. "I don't think it will go like Libya,
but the Eastern Province is a significant oil producing province
of Saudi Arabia so that is why everyone is looking at it."
Libya's oil output has fallen to 700,000-750,000 barrels per
day (bpd) from normal levels of 1.6 million bpd as most foreign
oil workers had taken flight, according to Shokri Ghanem, the
head of Libya's state-owned oil company. []
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Reuters Insider show on Libyan oil company head interview:
http://link.reuters.com/jys38r
Graphics showing:
Middle East unrest http://r.reuters.com/nym77r
Oil price shocks http://r.reuters.com/qes28r
Countries most reliant on oil http://r.reuters.com/dux28r
Brent and WTI open interest
http://graphics.thomsonreuters.com/AS/1/NT_110403075320.jpg
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The market is also looking to U.S. non-farm payrolls data
due later on Friday, which are expected to have risen in
February after being held down by extreme winter weather in
January. <ECONUS>
Employment is expected to have increased by 185,000, which
would be the largest gain in almost a year.
"If we see some strong numbers, that could give some further
support," said Commerzbank's Fritsch.
(Additional reporting by Florence Tan)
