* Opposition, security forces clash in Tehran - websites
* Saudi Arabia denies sending tanks to Bahrain
* Coming up: API oil data at 4:30 p.m. EST (2130 GMT)
(Recasts, updates with Brent settlement, additional detail)
By Robert Gibbons
NEW YORK, March 1 (Reuters) - Brent crude oil surged more
than 3 percent to push above $116 a barrel on Tuesday as supply
disruptions and more turmoil in the Middle East and North
Africa kept investors on edge.
U.S. crude rose more than 2 percent and settled above $99 a
barrel as a Reuters report that human rights activists said
Saudi authorities had detained a Shi'ite cleric fueled fears of
sectarian conflict in the world's top oil exporter.
[] []
Clashes between anti-government protesters and Iran's
security forces in Tehran reported by pro-reform websites added
to investor concerns about unrest and its effect on the flow of
oil supplies in the region. []
"The Saudis 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.
Brent crude futures for April <LCOc1> rose $3.62 to settle
at $115.42 a barrel, the highest finish since front-month Brent
closed at $116.22 on Aug. 27, 2008. Brent's intraday peak was
$116.32, hit post-settlement.
U.S. crude <CLc1> rose $2.66 to settle at $99.63 a barrel,
the highest close since front-month crude ended at $100.64 on
Sept. 30, 2008.
Brent's premium to its U.S. counterpart <CL-LCO1=R> was
above $15 a barrel, up more than 80 cents intraday, after 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.
LIBYA REVOLT, MIDDLE EAST UNREST
As investors reacted to a rising number of protests and
clashes in the region, Muammar Gaddafi remained defiant against
the opposition and the United States said Libya faced the
danger of civil war if the leader refused to quit.
[]
Ratcheting up the pressure on Gaddafi, the United States is
looking at a full range of options for Libya and is sending
ships and Marines to the Mediterranean, U.S. defense officials
said. []
Libya's National Oil Corporation chairman, Shokri Ghanem,
said its oil installations were undamaged, although output was
halved because of departures by oil workers. []
A report in an Egyptian newspaper that Saudi Arabia had
sent tanks to Bahrain to try to quell protests there roiled
markets briefly, prompting a Saudi defense ministry official to
issue a denial. []
In Oman, a small oil producer, the army wounded at least
one person as it moved to disperse protesters near the northern
port of Sohar, witnesses said. []
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
OIL SPIKES COULD HIT GROWTH
U.S. stocks dropped on fears the jump in oil prices could
choke off economic recovery, offsetting a positive reading on
manufacturing. []
The dollar recovered from a 3-1/2-month low against a
currency basket hit ahead of Federal Reserve Chairman Ben
Bernanke's appearance before Congress as the euro again failed
to breach resistance at its 2011 high. []
Bernanke said the recent surge in oil prices was 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 (2130 GMT) on Tuesday.
An expanded Reuters survey of analysts on Tuesday forecast
a small increase in crude stockpiles, with refined products
falling. []
(Additional reporting by Gene Ramos and David Sheppard in New
York, Zaida Espana in London and Florence Tan in Singapore;
Editing by Dale Hudson)
