Libya's oil output cut by up to 75 pct | Reuters

Turmoil in Libya has slashed its oil output by 75 percent or 1.2 million barrels per day, key Libyan oil sector player ENI said on Thursday.

This is the highest estimate to date of Libya's crude production reduction and has added steam to oil's price rally.

Oil surged on Thursday to near $120 a barrel because of the disruption , even though OPEC's leader Saudi Arabia has said it is willing to make up for any shortages while trading sources questioned ENI's high Libyan outage estimate.