* Oil rises slightly but down from peaks on Libya fears
* US dollar trims gain vs euro, slips vs yen on GDP report
* US bonds pare losses after revised U.S. GDP data
(Adds fresh price quotes, ongoing safe-haven buying)
By Herbert Lash
NEW YORK, Feb 25 (Reuters) - Global stocks rallied from a
week-long selloff on Friday but oil prices edged higher even
after Saudi Arabia boosted oil output to calm fears of supply
disruptions sparked by the uprising in Libya.
Gold and bond prices also rose, reflecting concerns that
the uprising in Libya could spill over to other oil-producing
countries in the Middle East and crimp global economic growth.
"I don't think many traders are comfortable being short
over the weekend," said Tom Bentz, a broker at Paribas
Commodity Futures in New York.
Saudi Arabia raised production about 8 percent to above 9
million barrels per day to make up for a near halt in Libyan
exports, an industry source said, helping prices fall from
peaks last seen in 2008. For details see []
The Saudi move bolstered news that U.S. consumer sentiment
rose to its highest level in three years in February, helping
offset a bearish report that showed the U.S. economy grew more
slowly than initially estimated in the fourth quarter.
[] []
The U.S. dollar rebounded against the euro but gold prices
rose toward $1,410 an ounce and were on track for a fourth
straight week of gains, supported by safe-haven demand.
The euro <EUR=> was down 0.38 percent at $1.3751, while
spot gold prices <XAU=> rose $9.11 to $1,408.80 an ounce.
Consumer sentiment rose to 77.5, up from 74.2 in January,
and the highest since January 2008, according to the Thomson
Reuters/University of Michigan survey.
Gross domestic product was revised lower to an annualized
rate of 2.8 percent from an initial 3.2 percent estimate.
Unrest in Libya still grabbed the spotlight even as oil
prices retreated from 2-1/2 year peaks of almost $120 a barrel
in London on Thursday to hover around $112 on Saudi efforts to
plug potential supply gaps. []
"We have started producing over 9 million barrels per day.
We have a lot of production capacity," the industry source told
Reuters.
ICE Brent crude futures <LCOc1> in London were up 99 cents
at $112.35 after briefly trading negative on the day. U.S.
light sweet crude oil <CLc1> rose $1.06 cents to $98.34.
Government forces shot dead two protesters in the Libyan
capital Tripoli, Al Jazeera television reported, as a popular
uprising against Muammar Gaddafi closed in on his main power
base. []
Stocks in Europe rose, with the FTSEurofirst 300 <>
index of top European shares closing up 1.2 percent.
World equities as measured by MSCI's all-country world
index <.MIWD00000PUS> rose about 1.1 percent.
"We got a little bit oversold in a very short period of
time this week so it's normal to get this kind of a rebound,"
said James Dailey, portfolio manager of TEAM Asset Strategy
Fund in Harrisburg, Pennsylvania.
"The market is likely to bounce a little more, but not too
much since there is still more to the downside after such a
strong rally and ongoing geopolitical concerns."
The Dow Jones industrial average <> was up 73.19
points, or 0.61 percent, at 12,141.69. The Standard & Poor's
500 Index <.SPX> was up 13.65 points, or 1.05 percent, at
1,319.75. The Nasdaq Composite Index <> was up 41.57
points, or 1.52 percent, at 2,779.47.
U.S. Treasury debt prices rose as turmoil in North Africa
and worries over the economic impact of higher oil prices
maintained a safe-haven bid for government debt.
[]
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
6/32 in price to yield 3.43 percent.
(Reporting by Angela Moon, Gene Ramos Gertrude Chavez-Dreyfuss
and Chris Reese in New York; Writing by Herbert Lash; Editing
by Kenneth Barry)
