Oil hits 2.5-year highs as Libya turmoil deepens (Reuters)

Oil prices fell on Monday as concerns about Greek debt talks and U.S. budget negotiations outweighed worries about potential Middle East supply disruptions. After the U.S. Thanksgiving holiday muted activity late last week, the market dipped in another day of light activity as U.S. lawmakers showed little progress toward a compromise designed to avoid mandated tax increases and government spending cuts scheduled for Jan. 1.

Slow economic growth and ample supplies are expected to keep a lid on oil next year with crude prices gradually slipping lower. But analysts polled by Reuters say a price crash is unlikely and geopolitical concerns should help support the market. Reuters monthly survey of 26 analysts forecast North Sea Brent crude oil will average $108 per barrel in 2013, down from an average of $111.71 so far this year. Brent prices are projected to fall further to an average of $105.90 in 2014, the poll showed.

Crude prices have risen in Asian trade on continued investor concerns the unrest in Libya could spread to the oil-rich Middle East.New York's main contract, light sweet crude for delivery in April, gained 44 cents to $104.82 per barrel.Brent North Sea crude for April delivery rose 56 cents to $116.50."It is the fear of the spread of turmoil to other Middle Eastern countries that is fuelling the further increase in prices," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.

World oil prices shot higher Monday, striking 2.5-year highs on the turmoil in Libya and the Middle East, analysts said.New York's main contract, light sweet crude for delivery in April, hit $106.95 a barrel -- the highest level since September 2008.It later stood at $105.67, up $1.25 compared with Friday's close.In London, Brent North Sea crude for April rose 88 cents to $116.85."The unrest in Libya has pushed the price of oil up to a 2.5-year high," Commerzbank analysts said in a research note on Monday.

Crude-oil prices inch closer to $97 a barrel on Tuesday, as unrest in the Middle East stokes supply concerns, while a refinery closure on the U.S.

World oil prices rose sharply Thursday as trader sentiment was jarred by simmering geopolitical tensions in the Middle East and North Africa, particularly in Libya and Syria.In London midday trade, Brent North Sea crude for delivery in May added $1.07 to $116.20 a barrel.New York's main contract, light sweet crude for May, won 99 cents to $105.26."Crude oil prices rebounded strongly amid ongoing political unrest across Middle East that continue to raise concerns about the oil supplies for the near-term," said Sucden analyst Myrto Sokou.

World oil prices shot higher Monday, striking 2.5-year highs on the turmoil in Libya and the Middle East, analysts said.New York's main contract, light sweet crude for delivery in April, hit $106.82 a barrel -- the highest level since September 2008.It later stood at $106.60, up $2.18 compared with Friday's close.In London, Brent North Sea crude for April jumped $2.15 to $118.12."The unrest in Libya has pushed the price of oil up to a 2.5-year high," Commerzbank analysts said in a research note on Monday.