Britain and France said they were seeking UN authority for a no-fly zone over Libya, as Muammar Qaddafi’s warplanes counter-attacked rebels and aid officials said a million people were in need.
Trading was volatile, with investors reacting both to attacks by Qaddafi supporters to retake an oil hub from rebels and then to rumors that Qaddafi was seeking a deal with rebels to secure a safe exit from the country.
Profit taking in the trade on the spread between Brent and its US counterpart also was cited by traders and brokers. The spread was reduced more than $1 to under $11 a barrel.
Brent crude futures for April delivery fell 32 cents to $115.65 a barrel at 2:10 p.m. EST (1910 GMT), pulling back from their earlier $118.50 peak.
US crude futures for April delivery was $1 higher at $105.42 a barrel, off an intraday high of $106.95.
That intraday peak was US crude’s highest price since Sept. 26, 2008, when front-month crude reached $108.11.
Brent’s premium to its US counterpart fell 90 cents to $10.42, having narrowed from a record above $17 hit March 1, according to Reuters data.
Government forces seeking to dislodge rebels from Libya’s strategically important coast struck at the Ras Lanuf oil town.
OPEC-member Libya usually produces about 1.6 million barrels per day and its output has been cut by as much as 1 million bpd, according to the International Energy Agency.
A leading member of Libya’s ruling establishment appealed to rebel leaders for dialogue in the clearest sign yet Qaddafi may be ready to compromise with opponents challenging his rule.
The offer was dismissed by rebel leaders.
