* Crude oil prices jump on Libyan unrest, protests in region
* Tribal leader threatens to halt oil exports
* Striking workers stop production at Nafoora - Al Jazeera
(Updates prices, adds quote, detail)
By Jessica Donati
LONDON, Feb 21 (Reuters) - Brent crude oil futures rose to a
2-1/2 year high over $105 a barrel a barrel on Monday, and U.S.
prices rallied by over $3 as clashes in Libya threatened to
disrupt oil flows from the OPEC member.
Brent futures <LCOc1> were up $1.73 at $104.25 a barrel by
1204 GMT after breaking above last week's peak of $104.52, its
highest since September 2008.
U.S. crude oil <CLc1> prices were up by $3.05 at $89.25 a
barrel around the same time.
One of the bloodiest revolts in the region hit the oil
exporter as scores were killed in anti-government protests, army
units defected to the opposition and long-time leader Muammar
Gaddafi's son vowed to fight to the last man standing.
[]
The leader of the Al-Zuwayya tribe in eastern Libya said
oil exports to the West would be cut off unless authorities
stopped violence against protesters.
"Libya is a significant producer and exporter of good
quality crude oil, and threats by the tribal leader to stop
production is worrisome," said Christophe Barret, an oil analyst
at Credit Agricole Corporate and Investment Bank.
Libya produced 1.58 million barrels per day in January, and
major disruptions in the oil-rich North African country would
present serious strategic challenges for Western governments.
Italy looks set to bear the brunt of a fall-out if Libya
descends further into chaos, but Eni Societa per Azioni <ENI.MI>
on Monday said output there had proceeded normally over the past
24 hours. []
Oil prices extended their rally on Monday after striking
workers halted production at Libya's Nafoora oilfield, Al
Jazeera television reported on Monday, without giving further
details. []
European oil and gas companies have evacuated staff and
suspended drilling preparations in Libya as violence spreads
across the north African country. []
CONTAGION
A wave of popular unrest in North Africa and the Middle East
has already toppled long-time leaders in Tunisia and Egypt, and
traders are watching events carefully in other members of the
OPEC group for signs of escalating tension.
"The biggest concern is current contagion spreading to Saudi
Arabia," said Michael Hewson, a market analyst at CMC Markets,
adding that "markets hate uncertainty and will act first, think
later".
Saudi Arabia fears that unrest in Bahrain, where majority
Shi'ites are protesting against the Sunni government, might
spread to its Shi'ite minority, who mostly live in the eastern
province, the source of Saudi oil wealth. []
Bahraini protesters camped out in Manama's Pearl Square and
pressed demands for a new government on Monday. "In the eyes of
the people the government has already fallen," said Amir Ahmed,
38, a government oil sector employee.
Elsewhere, in OPEC's second-largest producer Iran, the
daughter of former president Akbar Hashemi Rafsanjani was
arrested on Sunday for taking part in a banned opposition rally,
the official IRNA news agency reported. []
In Yemen, President Ali Abdullah Saleh warned protesters
demanding an end to his 32-year rule that they could not achieve
their goal through "anarchy and killing", after nationwide
unrest, which has killed 12 people since Thursday.
[]
(Reporting by Jessica Donati; editing by Jane Baird)
