NYMEX-Crude hits $100 on Libya supply worries

 * Obama says Libya violence must stop, eyes options

 * EU meets, paves way for sanctions against Libya -     *

 * IEA will rely on OPEC to act first in case of shortage

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

 NEW YORK, Feb 23 (Reuters) - U.S. crude oil futures rose
for a second day on Wednesday, touching $100 a barrel briefly
and ending at the highest level since October 2008, as
escalating violence in Libya disrupted its oil production.

 Fears persisted that Libya's unrest could spread to other
oil producers in the Middle East and North Africa, further
raising oil's geopolitical risk premium, traders said.

 The International Energy Agency will rely first of all on
OPEC to meet any loss of Libyan oil and would save its
emergency stockpiles as a last resort, its executive director
said. [ID:nLDE71M10Z]

 IEA officials and OPEC have repeatedly made clear they can
act to calm oil markets if there is a genuine shortage.

 In post-settlement trading, prices edged up after the
American Petroleum Institute said U.S. crude stockpiles rose
163,000 barrels last week, far smaller than the forecast in a
Reuters poll for a 1.2 million barrel rise. [API/S]

 The API also reported a 1.6 million barrel drop in gasoline
stocks, against the poll's forecast for a 400,000 barrel build.
Distillate stocks fell 534,000 barrels, the API said, far below
the forecast for a 1.2 million barrel drawdown.[EIA/S]

 The U.S. Energy Information Administration will release its
own inventory data on Thursday, at 11 a.m. EST (1600 GMT).

 FUNDAMENTALS

 * On the New York Mercantile Exchange, crude for April
delivery CLJ1, the new front-month contract, settled at
$98.10 a barrel, up $2.68, or 2.81 percent, the highest close
since Oct. 1, 2008, when prices ended at $98.53. It traded from
$95.14 to $100, the highest intraday price since Oct. 2, 2008,
when prices hit $100.37.

 * In two days, NYMEX front-month crude advanced $11.90, or
13.8 percent, the biggest two-day percentage gain since Jan.
21, 2009, when prices rose 19.28 percent.

 * In London, ICE Brent for April delivery LCOJ1 settled
at $111.25 a barrel, the highest close since Aug. 29, 2008 for
front-month Brent crude, when prices ended at $114.05.

 * In three days, the Brent contract gained $8.73, or 8.52
percent, the biggest three-day percentage gain since the first
three days of August, 2009, when prices jumped 10.55 percent in
that period.

 * NYMEX March heating oil HOH1 settled higher at $2.9049
a gallon, the highest close for front-month heating oil since
Sept. 26, 2008, when prices ended at $2.9949.

 * NYMEX March RBOB ended up at $2.7149 a gallon, the
highest close since Sept. 12, 2008 settlement at $2.7696.

 * Libyan leader Muammar Gaddafi's increasingly desperate
attempts to crush a revolt against his four-decade rule have
killed as many as 1,000 people and split Libya, Italy's Foreign
Minister said. [ID:nLDE71L2LE]

 * 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]

 * European Union governments agreed to pave the way for
possible sanctions against Libya after Muammar Gaddafi's
violent suppression of anti-government protests.
[ID:nLDE71M18C]

 * For more stories on the Middle East, see [ID:nLDE71MIA]

 * Temperatures rebounded to near normal in the U.S.
Northeast, as the top heating oil consuming region awaited an
approaching storm packing a wintry mix of snow and rain slated
to hit Thursday. [ID:nN1313]

 MARKET NEWS

 * Wall Street dropped for a second straight day after
violence in Libya sent U.S. oil prices briefly to $100 and
technology shares sank, adding credence to calls for a market
correction. [.N]

 * The euro rose and U.S. dollar was down 0.51 percent
against a basket of currencies in late trading, losing some of
its safe-haven luster. .DXY [USD/]

 * Gold hit its highest level in more than seven weeks,
closing near record highs, as escalating unrest in Libla and
high crude prices fuel fears of inflation and slower economic
growth. [GOL/]

 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

    SETTLE     NET    PCT     LOW    HIGH  CURRENT  DAY AGO

              CHNG   CHNG                      VOL      VOL
CLc1    98.10    2.68   2.8%   95.14  100.00  463,186   37,925
CLc2    99.82    3.02   3.1%   96.45  101.43  153,825  638,193
LCOc1  111.25    5.47   5.2%  105.97  112.46  249,581  248,646
RBc1   2.7149  0.1128   4.3%  2.6045  2.7429   15,728   28,694
RBc2   2.8677  0.1213   4.4%  2.7450  2.8980   42,440   40,777
HOc1   2.9049  0.1125   4.0%  2.7860  2.9216   20,970   32,721
HOc2   2.9166  0.1131   4.0%  2.7966  2.9348   49,310   52,246
TOTAL MARKET            VOLUME                 OPEN  INTEREST

          CURRENT    Feb 22   30D AVG     Feb 22  NET CHNG
CRUDE       1,201,00 1,435,676   917,754  1,506,594     4,659
RBOB         106,809   119,001   118,098    283,669      -733
HO           142,077   138,994   132,584    317,449    -4,344
 (Reporting by Gene Ramos; Editing by David Gregorio)

(Source: http://www.reuters.com/article/2011/02/23/markets-energy-nymex-idUSN2319322720110223)