* Oil prices rebound, keep stock gains muted
* Dlr near record low vs Swiss franc
* Worries about growth support safe-haven assets
By Anirban Nag
LONDON, Feb 25 (Reuters) - Oil resumed its surge on Friday,
as political tension in North Africa showed little signs of
abating and stock prices were checked on fears that runaway oil
prices will constrain global growth.
Brent oil <LCOc1> traded higher, despite assurances by top
oil exporter Saudi Arabia that it would step in to fill any
shortfall due to supply disruptions from oil-rich Libya.
Analysts predicted that elevated oil prices could trigger more
selling in stocks and other risky assets. [].
European stocks climbed, taking a breather after a week-long
retreat, although sentiment was fragile. The FTSEurofirst 300
<> index of top European shares was up 0.4 percent at
1,150.41 points, having lost 3.5 percent over the past week.
"The Libyan crisis really brought back the geopolitical
risks at the forefront of investors' minds," said David
Thebault, head of quantitative sales trading, at Global Equities
in Paris. "That being said, this week's pull-back (in stock
prices) has been serious and we're getting close to a floor
here."
Japan's Nikkei average <> rose 0.7 percent, its first
gain in four days, while world equities measured by the MSCI
All-Country World Index <.MIWD00000PUS> rose 0.35 percent,
although it was off its 30-month high hit earlier this week.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a take-a-look on the crisis: []
For graphics: http://r.reuters.com/nym77r
For a technical outlook on oil prices, see []
For a story on oil prices impact []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Even if oil markets stabilise, broader sentiment could
remain cautious as high fuel prices would add to inflationary
pressures and crimp consumer demand. That could threaten growth
in Asian economies, the drivers to a global recovery since the
2008 financial crisis hit output worldwide.
Since the Libyan crisis erupted earlier this month, some of
the worst performing markets within Asia are India, South Korea
and Taiwan due to their higher dependency on oil imports, Brown
Brothers Harriman said.
Analysts reckon the degree of vulnerability for G-10 oil
importers is far less than that found in emerging economies.
"Our own analysis indicates that net oil imports for many
emerging economies in Asia are close to or greater than 5
percent of GDP," said Andrew Cox, G-10 strategist at Citi.
OIL'S FIRM BIAS
Brent crude oil futures <LCOc1> rose $1.45 to $112.81 per
barrel, while U.S. crude <CLc1> rose to $98 as Libya output cuts
weighed. Key Libyan oil terminals are under rebel control while
Muammar Gaddafi's forces have fought back against the rebellion
[].
Estimates varied on how much of Libya's production is down
with the International Energy Agency pegging the volume shut at
500,000 to 750,000 bpd. Italian oil company ENI <ENI.MI> said as
much as 1.2 million bpd may be down.
Although oil prices have come off 2-1/2 year highs, they are
still up 12 percent in the past three sessions alone, raising
concerns about a wider slowdown in global growth and lending
support to safe-haven assets such as gold, U.S. Treasuries and,
of late, the Swiss franc.
The dollar stayed near a record low against the franc <CHF=>
on Friday with some analysts saying that higher oil prices are
seen to have a bigger impact on the U.S. economy given its
reliance on consumer spending for growth.
It has fallen nearly 4.8 percent against the franc in the
last two weeks, its worst showing since June.
Meanwhile, the euro <EUR=> was steady at $1.3805, hovering
near 2011 highs versus the dollar helped by more hawkish
comments from European Central Bank officials. [].
ECB officials have recently talked tough about fighting
inflation, reinforcing a market view that the Bank will raise
interest rates before the U.S. Federal Reserve.
"The contrasting policy outlooks for Europe and the U.S.
have helped the euro and weighed on the dollar, and it wouldn't
be surprising to see the euro test the early February highs,"
said Kit Juckes, currency strategist at Societe Generale.
Gold, another haven in times of global turmoil, rose above
$1,400 an ounce and was headed for its fourth consecutive week
of gains.
(Additional reporting by Blaise Robinson and Jessica Mortimer;
editing by Stephen Nisbet)
