Oil prices rose to their highest in 2-1/2 years on Tuesday as investors worried that violence in Libya could spread to other top producers in the Middle East, while the strength of the dollar dented gold and base metals.
In agricultural commodities, arabica coffee futures hit fresh 13-1/2 year highs, boosted by a shortage of good-quality beans, while cocoa futures scaled new 32-year peaks.
Perceived safe-haven assets such as U.S. Treasuries and the Swiss franc gained at the expense of more growth-linked markets such as equities, which fell back from their recent 29-month highs in Europe, and industrial metals such as copper.
Libyan leader Muammar Gaddafi signalled defiance of a mounting revolt against his 41-year rule on Tuesday, appearing on state television and denying he had fled the country.
His forces have cracked down on anti-government demonstrators, with fighting now spreading to the capital Tripoli after erupting in Libya's oil-producing east last week.
U.S. crude futures hit a 2-1/2 year high on Tuesday on concern the violence could cut more of the OPEC-member's output and similar events could happen in neighbouring nations.
Libya is the third-largest oil producer in Africa and at least some 100,000 barrels per day -- about 6% of the country's production -- have been shut in.
U.S. crude for April delivery touched its highest since October 2008 at $98.48 U.S. a barrel before easing back to $96.14 U.S. a barrel, still up on the day.
Related Stories
