Futures Movers: Oil futures pull back from 30-month highs

SYDNEY (MarketWatch) — Benchmark Nymex crude-oil futures eased back in electronic trading on Tuesday, but prices remained at near 30-month highs as unrest in Libya and the Middle East continued to drive buying on supply fears.

Light, sweet crude for May delivery (CLK11 108.07, -0.40, -0.37%) dropped 32 cents or 0.3%, to $108.15 a barrel on the New York Mercantile Exchange in electronic trading.

The Libyan government is prepared negotiate reforms that could include elections or a referendum, but the resignation of embattled leader Moammar Gadhafi is not an option, according to media reports on Tuesday, citing a government spokesman.

The developments came amid widespread unrest across the Middle East, including demonstrations in Algeria and Yemen, which has been supporting oil prices on the back of supply fears.

Libya oil minister talks Gadhafi

In his first face-to-face interview following reports of his defection last week, Libyan Oil Minister Shukri Ghanem talks exclusively to Sam Dagher.

Oil prices have risen more than 18% since the beginning of the year.

Late Monday in the U.S., Federal Reserve Chairman Ben Bernanke said the recent rise in commodity prices did not present a major threat to inflation.

Bernanke told a Financial Markets conference in Atlanta that as long as inflation expectations remain stable and well anchored, "which in my view remains the case," and as long as commodity-price increases eventually stabilize, then this will not be reflected in a standard increase in inflation.  Read more on Ben Bernanke's address.

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