NYMEX-U.S. crude down on news Saudis

* Libyan crude shipments almost halted, keeps losses slim

 * CME raises margins for U.S. crude futures

 * Dollar, global equities rise on Saudi move

 * Coming up: Reuters/UMichigan consumer sentiment Friday

 NEW YORK, Feb 25 (Reuters) - U.S. crude oil futures fell
back on Friday following news that Saudi Arabia had raised
production but investors remained concerned about the Libyan
supply shortfall, limiting losses.

 Saudi Arabia has increased its oil production by more than
700,000 barrels per day to more than 9 million bpd to
compensate for disruption to Libyan output, an industry source
familiar with the kingdom's production told Reuters.
[ID:nLDE71O102]

  Oil shipments from Libya have almost halted because of
reduced production and continuing violence while rebels were
reported in control of nearly all oil fields east of the Libyan
town of Ras Lanuf.

  The dollar and global equities rose on news about Saudi
production.

  On Thursday, a late sell-off triggered by a rumor that
Libyan leader Muammar Gaddafi had been shot pulled down NYMEX
crude. There has been no indication of where the rumor had
started or any news report to substantiate it.

 FUNDAMENTALS

 * On the New York Mercantile Exchange, crude for April
delivery CLJ1 at 8:15 a.m. EST (1315 GMT) was down 50 cents,
or 0.51 percent, at $96.78 a barrel, after trading from $96.39
to $99.20. It hit $103.41 on Thursday, the highest since Sept.
29, 2008 before plunging at the close.

 * In London, ICE Brent for April delivery LCOJ1 was up 30
cents, or 0.27 percent, at $111.66 a barrel, trading from
$110.52 to $113.91. On Thursday, it soared to $119.79, the
highest since the Aug. 22, 2008, before retreating near the
close.

 * Crude oil shipments from Libya, the world's 12th-largest
exporter, have almost halted because of reduced production, a
lack of staff at ports and security concerns, industry sources
said. Libya normally exports 1.3 million barrels per day of its
1.6 million-bpd production. [ID:nLDE71O19F]

 * Rebels are in control of nearly all oil fields east of
the Libyan town of Ras Lanuf, with fields and oil terminals
still working at 25 percent capacity, a petroleum engineer who
is a member of Benghazi's interim leadership said on Friday.
 [ID:nLDE71O14J]

 * Thousands of Iraqis took to the streets on Friday to
protest against corruption and a lack of basic services in an
organized nationwide "Day of Rage" inspired by uprisings around
the Arab world. [ID:nLDE71O11X]

 * The CME Group (CME.O) raised margins on U.S. crude oil
futures CLc1 by 20 percent, with margins for hedgers and
members of NYMEX increased to $4,500 from $3,750. On the
IntercontinentalExchange (ICE.N), margins on Brent crude
futures LCOc1 will be raised to $5,200 from $4,850, a 7
percent increase. The changes are effective Friday.
[ID:nN24123360]

 * China's banking regulator has drawn up a tough new set of
capital requirement rules as part of efforts to implement Basel
III guidelines, according to a document obtained by Reuters on
Friday. [ID:nTOE71O05U]

 MARKET NEWS

 * U.S. stocks index futures rose after a week-long
sell-off, adding to a late rebound in the previous session as
oil prices stabilized. [.N]

 * Global stocks rose on news that Saudi Arabia had raised
supplies, though worries that pricey oil may threatened global
growth kept gains in check. MKTS/GLOB]

 * Dollar edged up as as oil prices retreated from their
recent highs on easing concerns about tensions in Libya and as
investors squared positions ahead of the weekend. The dollar
was up 0.15 percent versus a basket of currencies.[USD/]
.DXY

 * Copper edged up as positive U.S. data on jobless claims
released Thursday supported sentiment but concerns remained
about fresh interest rates increases in China which may slow
economic growth and hit demand for metals. [ID:nLDE71O0P5]

 UPCOMING DATA/EVENTS

 * Reuters/University of Michigan U.S. consumer sentiment
for February, 9:55 a.m. EST (1455 GMT) on Friday.
8:20     LAST     NET    PCT     LOW    HIGH  CURRENT  DAY AGO

              CHNG   CHNG                      VOL      VOL
CLc1    97.08   -0.20  -0.2%   96.39   99.20   51,319  489,667
CLc2    98.66   -0.08  -0.1%   98.01  100.67   12,442  167,464
LCOc1  111.83    0.43   0.4%  110.52  113.91   69,412  305,885
RBc1   2.7305  0.0138   0.5%  2.7038  2.7532      633   27,674
RBc2   2.8872  0.0123   0.4%  2.8605  2.9159    2,205   48,928
HOc1   2.8906  0.0133   0.5%  2.8699  2.9301      313   29,336
HOc2   2.9021  0.0089   0.3%  2.8766  2.9478    3,341   53,273
 * NYMEX crude oil for April CLc1 fell 20 cents to $97.08 a
barrel by 8:20 a.m. in volume of 51,319 lots.

(Source: http://www.reuters.com/article/2011/02/25/markets-energy-nymex-idUSN2524362320110225)