Oil up 3% on Libya halt, Mideast escalation fears

Oil prices rose around 3% on Monday on reports of a near total production stoppage in Libya, adding to earlier gains on concerns that escalating conflict in the Middle East could disrupt regional oil supplies.

Brent crude futures climbed $2.28, or 2.89%, to $81.30 a barrel by 1316 GMT, while U.S. crude futures were at $77.30 a barrel, up $2.47, or 3.3%.

Brent's intra-day high of $81.40 a barrel is the highest the contract has traded in 11 days.

Prices jumped after Libya's eastern-based government announced the closure of all oil fields on Monday, halting production and exports.