NYMEX-US crude hits $103 on Libyan worries, eyes data

* Libyan output down more than 25 pct - Reuters calculation

* North Sea Brent nears $120, U.S. crude hits $103

* Coming up: U.S. EIA oil stocks data, 11 a.m. EST Thursday

NEW YORK, Feb 24 (Reuters) - U.S. crude oil futures rallied for a third
session Thursday as prices soared to their highest since late August 2008 as
escalating violence in Libya sparked supply worries.

Speculation that the Libyan unrest could spread to other big oil producers
in the Middle East and North Africa again spurred buying, traders said.

The violence in Libya has cut at least 400,000 barrels per day of that
country's 1.6 million bpd output, Reuters calculations show. [ID:nLDE71M1RM]

"The market cannot accommodate another disruption, in our view, with the
problems in Libya potentially absorbing half of OPEC's spare capacity," Goldman
analyst Jeffrey Currie said in a research note.

The upheaval in Libya, which holds Africa's largest proven oil reserves,
has ignited fears of an inflationary spike and hitting industrial commodities.
[ID:nLDE71N1AY]

Another assurance that any supply shortfall from Libya could be replaced
came from from senior Saudi sources.

"Saudi is willing and capable of supplying oil of the same quality, either
Arab extra light or through blending," one source said. "OPEC stipulates that
it is able to supply all types of oil if needed," the source added.

Traders are also gearing up for the weekly U.S. inventory report from the
U.S. Energy Information Administration.

In a Reuters poll on Wednesday, analysts forecasts called for a 1.2 million
barrel increase in domestic crude stocks in the week to Feb. 18 (EIA/S)

The poll also forecast a 1.2 million barrel decline in distillates and a
400,000 barrel build in gasoline supplies.

Late Tuesday, industry group American Petroleum Institute said in its
inventory report that crude stocks rose by 163,000 barrels, distillates fell by
534,000 barrels and gasoline stocks dropped by 1.6 million barrels. [API/S]

FUNDAMENTALS

* On the New York Mercantile Exchange, crude for April delivery CLJ1, was
up $2.54, 0or 2.6 percent at $100.64. It traded from $98.50 to $103.41, the
highest since prices hit an intraday high of $106.91 on Sept. 29, 2008.

* In London, ICE Brent for April delivery LCOJ1 was up $3.64, or 3.27
percent, at $114.89 a barrel, after trading from $111.83 to $119.79, the
highest since Aug. 22, 2008 intraday high of $120.91.

* Reuters market analyst Wang Tao said technical charts showed Brent could
be on course for a rise to $158 per barrel in 2011, well above its 2008 high of
$147.50, while he expected U.S. crude to touch $159 per barrel. [ID:nL37DOODV]

* In early trading, both NYMEX March heating oil HOH1 and March RBOB
RGH1 have risen more than 5 percent, swept higher by crude's rally. Both
contracts ended at their highest levels since September 2008 on Wednesday.

* Residents of Benghazi have jailed those they say are mercenaries and set
up committees to run this eastern city now out of the control of leader Muammar
Gaddafi, who has lost control of swaths of Libya. [ID:nLDE71N1FC]

* For the U.S. Northeast, temperatures will range from the 20s to lower 30s
in New England to the 30s to lower 40s in the Mid-Atlantic states as the region
braces for snow in its northern and rain in its southern sections. [ID:nN1313]

* U.S. President Barack Obama said the violent crackdown in Libya violated
international norms and that he had ordered his national security team to
prepare the full range of options dealing with the crisis. [ID:nWEN8378]

MARKET NEWS

* Wall Street stock index futures fell, signaling another down day as oil
continued to rally on the Libyan turmoil, which has dented investor
sentiment.[.N]

* In early trading, the dollar was down 0.32 percent against a basket of
currencies. .DXY [USD/]

* Gold steadied near seven-week highs as investor fear over inflation
stemming from higher crude oil prices were partially offset by pockets of
profit-taking. [GOL/]

* Copper fell on concerns that higher oil prices may slow economic growth
and cripple demand for industrial metals. [MET/L]

UPCOMING DATA/EVENTS

* U.S. weekly jobless claims, 8:30 a.m. EST, Thursday

* U.S. durable goods for January, 8:30 a.m. EST, Thursday
8:12 LAST NET PCT LOW HIGH CURRENT DAY AGO

CHNG CHNG VOL VOL
CLc1 101.22 3.12 3.2% 98.50 103.41 101,260 37,925
CLc2 102.65 2.83 2.9% 100.22 104.95 27,993 638,193
LCOc1 115.11 3.86 3.5% 111.83 119.79 117,954 258,624
RBc1 2.7889 0.0740 2.7% 2.7362 2.8560 2,298 28,694
RBc2 2.9470 0.0793 2.8% 2.8883 3.0354 5,259 40,777
HOc1 2.9600 0.0551 1.9% 2.9120 3.0625 2,097 32,721
HOc2 2.9750 0.0584 2.0% 2.9286 3.0767 9,117 52,246
* NYMEX crude oil for April CLc1 rose $3.12 to $101.22 a barrel by 8:12 a.m.
in volume of 101,260 lots.
(Reporting by Gene Ramos; Editing by John Picinich)