* Opposition, security forces clash in Tehran - website
* Saudi Arabia denies sending tanks to Bahrain
* Coming up: API oil data at 4:30 p.m. EST (2130 GMT)
(Recasts, updates prices and market activity)
By Robert Gibbons
NEW YORK, March 1 (Reuters) - Brent crude oil prices pushed
back above $114 a barrel on Tuesday as supply disruptions and
the potential for more as unrest in the Middle East and North
Africa spreads kept investors on edge.
U.S. crude also rose sharply, pushing above $99 a barrel
intraday, as a Reuters report that human rights activists said
Saudi authorities detained a Shi'ite cleric fueled fears of
sectarian conflict in the world's top oil exporter and sending
Saudi Arabian equities lower. [] []
Clashes between opposition supporters and Iran's security
forces in Tehran reported by an opposition website added to
investor concerns about the security of oil supplies in the
region. []
A report in an Egyptian newspaper that the Saudi Arabia had
sent tanks to Bahrain to try to quell protests there roiled
markets briefly, prompting a Saudi Arabian defense ministry
official to deny the report. []
With Muammar Gaddafi remaining defiant against opposition,
the United States said Libya faced the danger of civil war if
Gaddafi refuses to quit, its demand for his departure carrying
fresh weight after news of Western military preparations.
[]
Brent crude futures for April <LCOc1> rose $2.51 to $114.31
a barrel at 12:36 p.m. EST (1736 GMT), having reached $114.66
intraday. U.S. crude <CLc1> rose $1.94 to $98.91 a barrel.
Brent's premium to its U.S. counterpart <CL-LCO1=R>
stretched above $15 a barrel, but remained below last week's
record $16.91. Brent's price rise has been stronger because
Europe is more vulnerable to supply disruptions from Libya and
the region.
"The Saudi's had seemed to be walking the tightrope and
avoiding problems, but the cleric story had people worried that
it signaled problems there," said Robert Yawger, senior vice
president, energy futures at MF Global in New York.
In Oman, a small oil producer in the region, the army fired
in the air, wounding one person, as it moved to disperse
protesters near the northern port of Sohar. []
Libya's National Oil Corporation chairman, Shokri Ghanem,
said its oil installations were undamaged, although output was
halved because of departures by oil workers. []
OPEC output fell 200,000 barrels per day in February from a
two-year high the previous month as the uprising in Libya
curbed supplies and offset Saudi Arabia's increased output, a
Reuters survey found. [] []
"We're now at the point where a $1-$2 move is just a normal
fluctuation," said Peter Beutel, president at Cameron Hanover
in New Canaan, Connecticut.
"At this point, we're rife with rumors and when any emerge
from the 'Petroleum Gulf' we're going to see a jump. If there's
some truth in it the move will be $5-$6 rather than $1-$2."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Middle East unrest graphics http://r.reuters.com/nym77r
Who is in control in Libya http://r.reuters.com/jem28r
Map of control in Libya http://r.reuters.com/fug38r
Countries most reliant on oil http://r.reuters.com/dux28r
Calculator: Oil price impact on GDP
http://r.reuters.com/jux28r
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OIL SPIKES COULD HIT GROWTH
U.S. stocks extended losses as the jump in oil prices
revived fears could choke off economic recovery, offsetting a
positive reading on manufacturing. []
The dollar hit its lowest in three and a half months versus
a currency basket ahead of Federal Reserve Chairman Ben
Bernanke's appearance before Congress, adding lift to
dollar-denominated oil prices. []
Bernanke said the recent surge in oil prices is unlikely to
have a big impact on the U.S. economy, but could lead to weaker
growth and higher inflation if sustained.
Oil investors awaited the latest U.S. weekly oil inventory
data from industry group American Petroleum Institute due at
4:30 p.m. EST (1630 GMT) on Tuesday.
Economists polled by Reuters expect an increase in
stockpiles on higher imports. []
(Additional reporting by Gene Ramos and David Sheppard in New
York, Zaida Espana in London and Florence Tan in Singapore;
Editing by Marguerita Choy)
