Brent hits 2-1/2 year high on Libya export concerns

>LONDON (Reuters) - Brent crude oil futures hit a fresh 2-1/2 year high of $104.60 a barrel on Monday as clashes in Libya threatened to disrupt oil flows from the OPEC member. Brent futures were up $1.86 at $104.38 a barrel by 0932 GMT, after breaking above last week's peak of $104.52, its highest since September 2008.U.S. crude oil prices were up by $2.14 at $88.24 a barrel around the same time.Anti-government protesters rallied in Tripoli's streets, tribal leaders spoke out against long-time leader Muammar Gaddafi, and army units defected to the opposition as one of the bloodiest revolts in the region hit the oil exporter."Libya is a significant producer and exporter of good quality crude oil and threats by the tribal leader to stop production is worrisome," said Christophe Barret, an oil analyst at Credit Agricole Corporate and Investment Bank."Iran is the next big worry," he said, referring to market concern the wave of popular unrest in north Africa and the Middle East since the start of the year, which has toppled presidents in Tunisia and Egypt, could hit big oil producers.The leader of the Al-Zuwayya tribe in eastern Libya said oil exports to the West would be cut off unless authorities stopped violence against protesters.Oil prices extended their rally on Monday after striking workers halted production at Libya's Nafoora oilfield, Al Jazeera television reported on Monday without giving further details.Protesters in Libya were told leader Muammar Gaddafi would enforce security at any price and fight until the last man standing.Oil major BP said it has suspended preparations for exploratory drilling for oil and gas in western Libya as a result of growing unrest there. (Reporting by Jessica Donati; editing by Keiron Henderson) Libya Tweet this Share this Link this Digg this Email Reprints