Oil above $115 on Libya unrest (Reuters) (02-03-2011)

SINGAPORE – Oil prices steadied above $115 a barrel on Wednesday after settling at near 2-1/2 year high amid tensions in Libya, revealing fears other producers in the Middle East and North Africa could face similar unrest.

Crude and gasoline stocks though had an unexpected drop in the United States, the world’s top oil importer.

Brent crude for April delivery rose 2 cents to $115.44 a barrel by 0740 GMT. The contract settled up $3.62 or 3.24 percent at $115.42 a barrel on Tuesday, its highest close since August 2008.

U.S. crude for April delivery rose 33 cents to $99.96 a barrel after hitting an intraday high of $100.64.

According to the chairman of Libya’s National Oil Corporation, Libya has cut almost half of its 1.6 million barrels per day of output due to the departure of oil workers, while its oil installations are undamaged.

Oil also received a boost from a surprise fall in U.S. crude inventories on lower imports while gasoline stockpiles dropped sharply.

U.S. retail gasoline demand rose 3.1 percent in the latest week despite a sharp jump in pump prices as warmer weather boosted use of the fuel, MasterCard Advisors' SpendingPulse report showed.

Source: Reuters