Oil markets have seen volatile and rapid trading Oil prices are hovering near recent highs after an air strike in Libya and fresh clashes between government forces and rebels fanned supply fears.
Brent crude was 0.2% higher at $116.81 in Asian trade. Earlier in US trading, it had almost touched $118 a barrel. US light, sweet crude was 0.4% higher in Asia at $102.94.
Analysts warned prices would climb further if conditions in Libya and the Middle East worsened, fuelling inflation and slowing global growth.
"Any time oil moves higher, it gets people nervous about future growth and inflation," said Bart Melek of TD Bank Financial Group.
'Safe haven'
The spike in oil prices has raised fresh concerns about sluggish global economic growth.
Analysts say this is driving investors towards markets that present lesser risks, not least the traditional powerhouses such as Japan.
Tokyo's main Nikkei 225 index rose by 0.9%.
"Japan is seen as a safe haven at the moment, as there are few inflationary pressures," said Jamie Coutts of BGC Securities.
Mr Coutts added that Japanese stocks were well positioned in the short to medium term.
Short-term solution?
At the same time, South Korea's stock market ended a two-day losing streak.
Seoul's main Kospi index rose 2.2% as investors priced in better-than-expected industrial output figures.
However, analysts warned that markets would remain volatile in the near future.
Robert Lutts of Cabot Money Management said that stock markets were adjusting to the new environment of high oil prices and beginning to realise that there was no short-term solution.
"We are going to live with this uncertainty for a some time," he said.
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