Oil above $102 on fears over Libya tensions (AP) (03-03-2011)

SINGAPORE -- Oil prices appeared above $102 a barrel on Thursday in Asia, as fears over Libya appear to have cut crude output in the OPEC nation more than previously estimated.

Benchmark crude for April delivery was up 30 cents at $102.53 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $2.60 to settle at $102.23, the highest settlement since Sept. 26, 2008.

In London, Brent crude for April delivery was up 32 cents to $116.67 a barrel on the ICE Futures exchange.

According to the International Energy Agency on Wednesday, a power struggle between supporters and opponents of Libyan leader Moammar Gadhafi had cut up to 1 million barrels per day of crude production, more than the group's previous estimate of as much as 750,000 barrels per day.

Sustained oil prices above $100 would eventually undermine consumer demand and threaten global economic growth.

In other Nymex trading in April contracts, heating oil rose 0.3 cent to $3.06 a gallon and gasoline dropped 0.5 cent to $3.02 a gallon. Natural gas futures were up 0.7 cent at $3.82 per 1,000 cubic feet.

Source: AP