Oil surges after Libya airstrike near oil terminal

(Reuters) – Oil rose to settle at its highest level since August 2008 on Wednesday after an airstrike near Libya’s oil infrastructure raised more fears the OPEC nation’s oil sector could become a target in embattled leader Muammar Gaddafi’s efforts to hold power.

News of the strike in Brega, about kilometers (1.2 miles) from a Libyan oil terminal, added to two weeks of fears the unrest could spill over into other large oil producers in the region.

Oil markets remained focused on the turmoil in the Middle East, which could signal another threat to global oil supplies after the Libyan revolt cut exports.

“It looks like an attack fairly close to what is one of Libya’s largest storage and export terminals,” said Andy Lebow, trader at MF Global in New York