* Gaddafi accepts roadmap to end civil war - African Union
* Technicals show Brent oil heading towards $130/bbl
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* Coming Up: France Feb industrial output; 0645 GMT
(Recasts, updates prices)
By Florence Tan
SINGAPORE, April 11 (Reuters) - Brent crude fell towards
$126 on Monday while U.S. crude futures slipped after touching a
2-1/2-year high as the African Union said Muammar Gaddafi had
accepted a roadmap to end the civil war in Libya.
South African President Jacob Zuma, who led a delegation of
African leaders at talks in Tripoli, met Gaddafi for several
hours. The issue of Gaddafi's stepping down had also been
discussed, the African Union said. []
The conflict in Libya has cut the country's 1.6 million
barrels per day oil output by around 80 percent, with much more
of an impact on Europe-biased Brent oil prices than U.S. crude.
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ICE Brent crude for May <LCOc1> fell 63 cents to $126.02 a
barrel by 0635 GMT after hitting an intraday low of $125.54.
The contract surged on Friday to settle above $126 a barrel,
the highest level in 32 months, as commodities rallied due to a
weaker dollar and continued fighting in Libya.
U.S. crude for May delivery <CLc1> fell 11 cents to $112.68
a barrel after rising as high as $113.46 earlier, the highest
since Sept. 22, 2008.
Peace talks in Libya are "definitely going to weigh on the
oil market," ANZ analyst Serene Lim said.
"We have seen quite a strong rally last Friday," she said,
adding that prices could be "consolidating and taking a
breather".
Top oil exporter Saudi Arabia also weighed in to calm
prices, reiterating its position during the weekend that its
"huge" spare output capacity allows it to meet any rise in
demand or drop in supplies. []
The country would have "no problems" producing at its
claimed 12.5 million barrels per day (bpd) capacity if the
market needed the oil, a senior Gulf source told Reuters on
Sunday. []
The market was also watching the outcome of a bailout for
Portugal which could be bearish for oil if it does not go
smoothly, Lim said.
European Union finance ministers on Saturday urged Portugal
to commit to reforms and defended the region's austerity steps
as tens of thousands of European workers protested in Budapest
against spending cuts. []
MIDEAST UNREST, ECONOMIC RECOVERY SUPPORTS
Unrest in other parts of Africa and in the Middle East that
could disrupt oil supplies is still a key concern among
investors.
Oil could rise more if U.S. companies post good earnings,
showing a strong economic recovery in the world's largest oil
consumer, analysts said.
"I don't see any factors to push the market down," Ken
Hasegawa, commodities sales manager at Newedge Japan said. "Oil
is on its way to the historical high of $147."
Dozens of unemployed university graduates and teachers
staged rare protests in two Saudi cities on Sunday to demand
jobs and better wages in the biggest Arab economy, which is
struggling to reduce joblessness. []
In Syria, a crackdown on popular dissent now in its fourth
week killed three people on Sunday, while Gulf Arab countries
called on Yemen's President Ali Abdullah Saleh to hand over
power to his vice president and allow the opposition to lead a
transition government that would prepare new elections.
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Africa's most populous nation Nigeria, which produces 1.9
million barrels per day of oil, started counting votes on Sunday
despite a chaotic and violent run-up to the elections.
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(Editing by Michael Urquhart)
