UPDATE 8-Oil climbs higher as Libyan fighting intensifies

                                
 * Libyan security forces fire shots at Tripoli protesters
                                
 * Rebels clash with Gaddafi forces at key oil terminal
                                
 * Oil facility at Zueitina on fire - Al Jazeera
                                
 
                                
 (Updates prices, protests, damage to oil facility)
                                
 By Claire Milhench
                                
 LONDON, March 4 (Reuters) - Crude oil rose on Friday, with
Brent pushing towards $116 a barrel, as Libyan security forces
began a violent crackdown on protesters in Tripoli and clashed
with rebels near the major oil terminal of Ras Lanuf.
                                
 Al Jazeera television also reported that an oil facility at
Zueitina, south of Benghazi was damaged and on fire.
[ID:nLDE7231HJ]
                                
 By 1448 GMT, Brent crude futures for April delivery <LCOc1>
were up 87 cents to $115.66 a barrel, after earlier touching
$116.30. U.S. crude futures for April <CLc1> rose $1.27 cents to
$103.18 a barrel. 
                                
 The intraday peak was $103.57, the highest since front-month
crude hit $106.91 on Sept. 29, 2008, eclipsing $103.41 reached
on Feb. 24.
                                
 "Tension in the Middle East is like a runaway train," said
Michael Hewson, an analyst at CMC Markets. "Once it starts it's
very difficult to stop. And if there is a danger that it impacts
the supply chain, people will understandably get nervous."
                                
 Libyan security forces fired shots and used tear gas to
disperse a protest against Muammar Gaddafi's regime in the
capital Tripoli. Demonstrators began the protest in the city's
eastern district after Friday prayers. [ID:nLDE7230PU]
                                
 Meanwhile, rebels advanced on the major oil terminal of Ras
Lanuf, clashing with forces loyal to Gaddafi. [ID:nLDE72316M]
                                
 The head of Libya's rebel National Libyan Council vowed
"Victory or death", in a short speech in the town of Al Bayda in
the rebel-held east of the country. [ID:nLDE72314M]
                                
 A rebel spokesman told Al Jazeera rebel forces will attack
Tripoli once a "no-fly" zone is enforced by international
powers. [ID:nLDE72318B] He added rebel forces had repelled an
attempt by Gaddafi forces to seize control of Brega airport in
the rebel-held east.
                                
 Barclays Capital analysts said in a note the chances of a
swift resolution in areas of tension had reduced considerably.
                                
 "Libyan oil is likely to be lost to the market for an
extended period, tying up considerable amounts of replacement
oil in much longer supply chains, and events in Nigeria, Iraq,
Iran and Bahrain are likely to provide a continuing backdrop of
headline risks," they said.
                                
 
                                
 SAUDI ARABIA
                                
 Investors and traders have been tracking 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
its oil-producing Eastern Province, demanding the release of
prisoners they say are being held without trial. [ID:nLDE7222CA]
                                
 "Saudi Arabia is the main risk in the region," said
Christophe Barret, global oil analyst at Credit Agricole
Corporate and Investment Bank. 
                                
 "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 argued 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."
                                
 Unrest continues in other parts of the region. Iraqi
security forces used water cannon and batons to disperse
protesters in the southern oil hub of Basra as thousands of
Iraqis rallied around the nation against corrupt officials and
poor basic services. [ID:nLDE7230XN]
                                
 In Yemen, hundreds of thousands protested against President
Ali Abdullah Saleh, who rejected an opposition plan for him to
transfer power by the end of 2011 [ID:nLDE7230NU]. 
                                
 And in Bahrain several people were reported hurt in fighting
between Sunni and majority Shi'ite Muslims. [ID:nLDE7230U9]
                                
 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 have taken flight, according to Shokri Ghanem, the
head of Libya's state-owned oil company. [ID:nSGE72103H]
                                
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 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
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Additional reporting by Florence Tan and Robert Gibbons,
editing by Jane Baird)