Oil, gold, grains up as investors fret over Libya

Oil, gold and grains surged on Tuesday as investors worried that violence in Libya could spill into top oil producers in North Africa and the Middle East, but metals suffered from a rush out of riskier assets. US 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 a similar story could unspool in neighbouring nations. Brent crude for April delivery rose $2.02 to $107.69 a barrel by 0544 GMT, after rising as high as $108.18 in early trade. On Monday, Brent hit a 2-1/2 year high of $108.70.

Spot gold fell $5 an ounce to $1,400.95 by 0548 GMT. It had risen as high as $1,410.65 as protests that have unseated leaders in Egypt and Tunisia spread to neighbouring states, including Libya. Corn rose more than 2 per cent in early trade, but lost some of its gains on a broad sell-off in industrial metals, after investors were unnerved by a fall of more than two per cent in China's benchmark stock market index. In Shanghai, zinc fell more than six per cent in its biggest daily drop in three years, leading a broad sell-off in riskier assets. Shanghai's most-active zinc futures contract fell as much as 6.2 per cent to 19,150 yuan a tonne, off a three-month high of 20,560 yuan earlier. Three-month zinc on the London Metal Exchange dropped nearly three per cent at $2,520. Copper prices held up well, with LME copper down just 0.1 per cent at $9,800 a tonne.