* U.S. crude at 30-month highs on fear unrest may spread
* Global stocks fall as oil concerns prompt growth worries
* Euro gains against U.S. dollar on hawkish ECB talk
* Government debt prices gain on safe-haven buying
(Adds fresh prices, latest Libyan developments)
By Herbert Lash
NEW YORK, Feb 22 (Reuters) - World stocks fell sharply on
Tuesday as revolt in Libya lifted crude prices to 30-month
highs and rekindled fears of slower global growth if the unrest
were to spread to other major oil suppliers in the region.
Libya declared force majeure on all oil product exports as
political violence shut more than 8 percent of the country's
1.6 million barrels per day of crude production. For details
see: [] []
Crude prices surged in New York and London, where prices
for North Sea Brent <LCOc1> touched $108.57 a barrel before
paring some gains. For details see: []
Gold prices steadied above $1,400 an ounce and base metals
fell as concerns about oil supplies cooled the appetite for
assets perceived as risky and drove investors into safe-haven
assets such as bullion and government debt.
Muammar Gaddafi vowed to die in Libya as a martyr and said
he would crush a revolt which has seen eastern regions already
break free from his rule. []
Libya ranks third in Africa after Nigeria and Angola in oil
production and investors are concerned that the spread of
violence in North Africa and the Middle East might disrupt the
supply of oil exports from the region.
U.S. light sweet crude oil <CLc1> rose $5.62 to $91.82 a
barrel, while Brent rose 48 cents to $106.20.
"If oil prices stay at these levels or even go higher then
there would be a question mark about the current global growth
forecasts," said Jane Coffey, a fund manager at Royal London
Asset Management.
Global stocks, as measured by MSCI's all-country world
index <.MIWD00000PUS>, fell 1.4 percent and Wall Street fell
more than 1 percent, with the tech-heavy Nasdaq falling more
than 2 percent.
Higher oil prices hit certain stocks on concerns of higher
fuel costs. The Arca airline index <.XAL> fell 5.5 percent.
Still, U.S. consumer confidence rose to a three-year high
in February, but a drop in home prices for the sixth month in a
row in December suggested the economy still faces significant
hurdles. []
The Dow Jones industrial average <> was down 168.43
points, or 1.36 percent, at 12,222.82. The Standard & Poor's
500 Index <.SPX> was down 25.40 points, or 1.89 percent, at
1,317.61. The Nasdaq Composite Index <> was down 68.54
points, or 2.42 percent, at 2,765.41,
The euro rose versus the dollar as hawkish comments from a
European Central Bank official helped it pare earlier steep
losses as escalating violence in Libya prompted investors to
seek safer assets. []
The euro <EUR=> was up 0.02 percent at $1.3678, and against
the Japanese yen, the dollar <JPY=> was down 0.61 percent at
82.60.
The price of the 30-year U.S. Treasury bond <US30YT=RR>
rose more than a full point and the benchmark 10-year rose
nearly a full point as the unrest in Libya prompted investors
to swap riskier assets for safe-haven bonds. []
The 10-year U.S. Treasury note <US10YT=RR> was up 31/32 in
price to yield 3.47 percent, while The 30-year bond last traded
1-16/32 higher in price to yield 4.60 percent.
Gold prices slipped but remained above $1,400 an ounce as
the dollar surrendered its earlier 1 percent gains versus the
euro, with violence in Libya fueling interest in the metal as a
haven from risk. []
Spot gold prices <XAU=> fell $5.51 to $1,400.40 an ounce.
(Additional reporting by Edward Krudy, Gertrude
Chavez-Dreyfuss, Chris Reese and Julie Haviv in New York;
Writing by Herbert Lash, Editing by Andrew Hay)
