* Brent hits 32-month high of $124.84 on Libya oil attacks
* Market nervous ahead of Nigerian elections
* Boom in commodities piles on inflationary pressure
(Updates prices, Middle East, analyst comments)
By Nia Williams
LONDON, April 8 (Reuters) - Oil hit a 32-month high above
$124 on Friday after attacks on Libyan oil fields raised the
prospect of long-term supply cuts, with commodities in general
rising on optimism global economic recovery will fuel demand.
Ongoing unrest in the Middle East and concerns that
postponed elections in Nigeria could spark a wave of militant
violence and disrupt supply also contributed to the bullish mood
in the market. [][]
By 1401 GMT Brent was up $1.84 to $124.51, after earlier
climbing more than $2 to just below $125. U.S. crude <CLc1>
climbed $1.05 to $111.35, down slightly from an intra-day peak
of $111.90, its highest since September 2008.
"Troubles in Libya mean Gaddafi has caused damage to the
Sirte basin, which has about two thirds of their oil; there's
dollar weakness and some very large fund action piling into the
market in oil and base metals," said Rob Montefusco, an oil
trader at Sucden Financial.
"People are saying the target is $150, but if we get up
there it will come off pretty quickly. I don't think this is a
sustainable rally because we're not seeing real demand pick up."
Rebels and forces loyal to embattled leader Muammar Gaddafi
exchanged bitter accusations over who had attacked oilfields and
infrastructure vital to both sides. []
The seven-week old civil war has cut Libya's 1.6 million
barrel per day output by 80 percent to between 250,000 and
300,000, a senior government official said. []
Fellow OPEC member and 1.9 million bpd producer Nigeria
postponed parliamentary elections again in some areas, although
polls will go ahead in most of the country on Saturday as
planned. []
"Upcoming elections in Nigeria has already seen an uptick in
violence in the oil rich states of Akwa Ibom and Balyesa, with
any loss in Nigerian crude (similar in quality to Libya) likely
to put further pressure on light-heavy differentials," said
Barclays Capital analyst Amrita Sen.
In Syria witnesses said security forces killed at least 10
pro-democracy protestors in Deraa as unrest flared after Friday
prayers, a favoured time for demonstrations in the Middle East,
and dozens of protestors were wounded in clashes in Yemen.
COMMODITIES BOOMING
Crude prices rallied in step with gains across the
commodities markets, where gold hit a record high, driven by a
weaker dollar and positive global outlook despite Portugal's
request for a bailout earlier this week. []
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Three-month technical views on 28 commodities:
http://link.reuters.com/pyx78r
Rising oil prices good for equities once again:
http://r.reuters.com/zyt88r
Reuters Insider Special - Doomsday Scenarios for Oil:
http://link.reuters.com/ner88r
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"New investment flows at the start of the quarter are
driving oil and gold this morning, with the strong rise over the
past week attracting trend followers and more fund money," said
Michael Guido, director of hedge fund energy sales at Macquarie
bank in New York. "The uptrend is still very much intact, with
key technical levels being taken out."
The surge in oil prices is stoking inflationary concerns for
governments worldwide due to the potential adverse impact on
economic growth of the rising cost of foodstuffs and raw
materials, and the risk of demand destruction.
(Additional reporting by Randy Fabi and Alejandro Barbajosa,
editing by Jane Baird)
