* Brent crude nears $120 a barrel as Libya output falls
* Oil leaps, specter of inflation spooks markets ,
* Swiss franc hits record high as US dollar falls broadly (Refiles to drop surplus word in first paragraph)
By Herbert Lash
NEW YORK, Feb 24 (Reuters) - Crude oil prices soared to almost $120 a barrel and the safe-haven Swiss franc hit a record high on Thursday as the turmoil in Libya kept markets tense, but gold and Wall Street stocks were steady.
The escalating violence in Libya, home to Africa's largest proven oil reserves, lifted benchmark Brent crude oil to its highest price since August 2008 and kindled investor fears of an inflationary spike that might slow global economic growth. For details see: [ID:LDE71N1AY]
The relentless surge in oil prices stung the U.S. dollar against major currencies, boosting the Swiss franc and to a lesser extent the Japanese yen as often happens during times of uncertainty. [ID:nLDE71N1GH]
Copper, often a harbinger of economic sentiment, fell to one-month lows but gold steadied near seven-week highs as investor fears over oil-induced inflation were partially offset by pockets of profit-taking. [ID:nLDE71N10J]
Brent crude futures for April delivery
Spot gold prices
"There are concerns about what is going to happen in Libya and what is going to happen to oil prices," said Standard Bank analyst Leon Westgate. "Higher oil prices are generally fairly negative on growth and there is a risk of contagion."
Forces loyal to Muammar Gaddafi launched a counter-attack but rebels threatened the Libyan leader's grip on power by seizing important towns close to the capital and bringing the tide of rebellion ever closer to his power base. [ID:nLDE71N009]
Disruption to Libya's output has cut at least 400,000 barrels per day of the country's 1.6 million barrels per day production, Reuters calculations show. [ID:nLDE71M1RM]
Italian oil company ENI said the decline was greater, estimating 1.2 million barrels of oil had been removed from the market.
Wall Street stocks steadied after two days of falls.
The Dow Jones industrial average <.DJI> was down 0.69 points, or 0.01 percent, at 12,105.09. The Standard & Poor's 500 Index <.SPX> was down 0.27 points, or 0.02 percent, at 1,307.13. The Nasdaq Composite Index <.IXIC> was up 4.98 points, or 0.18 percent, at 2,727.97.
U.S. Treasury debt prices rose with continued support from safe-haven buying, and some analysts forecast yields to fall even lower in the near term. [ID:nN24345472]
The benchmark 10-year U.S. Treasury note
The euro