* Weaker dollar, economic data supports oil prices
* End-quarter book-squaring, Moscow metro bombing supports
* U.S. stock markets up on Greece hopes, energy shares
* Coming up: Key U.S. monthly jobs report on Friday
(Recasts, updates prices)
By Robert Gibbons
NEW YORK, March 29 (Reuters) - Oil prices rose almost 3
percent on Monday, lifted by a weaker dollar, renewed economic
optimism and end-of-quarter book-squaring.
The dollar index <.DXY> fell against a basket of
currencies, helping to boost commodity prices, including oil.
Trading sources reported end-of-quarter and end-of-month
buying ahead of the Easter holiday weekend and several said
there could be some lift to oil from concerns about a suicide
bombing in the Moscow metro. []
"The explosion in Russia is a culprit along with the weak
dollar and there is end-of-quarter book-squaring and
window-dressing on Wall Street," said Stephen Schork, president
at the Schork Group in Villanova, Pennsylvania.
U.S crude for May delivery <CLc1> rose $2.17, or 2.71
percent, to settle at $82.17 a barrel, ending a three-session
losing streak and trading as high as $82.78, the highest
front-month crude price since March 17.
London Brent <LCOc1> crude gained $1.88 to settle at
$81.17.
The euro strengthened against the dollar as debt-stricken
Greece sold seven-year bonds and after last week's euro zone
agreement on emergency financial aid for Greece. []
Strong U.S. and European economic data and robust Asian
indicators helped to lift equity markets. Euro zone economic
sentiment increased more than expected in March.
U.S. consumer spending rose as expected in February for a
fifth straight month, but stagnant incomes pushed savings to
their lowest level since October 2008. []
U.S. stocks closed higher on Monday as Greece launched its
sovereign bond issue and with energy shares helping fuel the
rise. []
"As is often the case when prices spike by more than a
couple of percentage points, several factors combined to ignite
an influx of speculative capital into the long side," Jim
Ritterbusch, president at Ritterbusch & Associates, said in a
note.
Markets were eyeing Friday's U.S. jobs report, with
economists forecasting the economy created about 190,000 jobs
in March.
ECONOMIC SENTIMENT
China's annual economic growth will reach 12 percent this
quarter, a government researcher said, as economists raised
growth forecasts for the world's second-largest fuel user after
strong industrial output growth last month. []
Japanese retail sales jumped the most in 13 years in the
year to February due to the lingering effects of government
stimulus, while South Korea's current account swung back to a
surplus in February on brisk exports. []
[]
Having traded intraday above $80 for the past 27 trading
sessions, some traders said oil prices appear to be ready for a
breakout from current levels.
However, with crude oil demand fundamentals continuing to
clash with the positive macroeconomic data, analysts said
prices could struggle to break out above the $84 mark -- with
the U.S. crude oil 2010 peak from January at $83.95 a barrel.
Oil prices could stay in the $70 to $80 range over the next
decade, according to an OPEC report released ahead of a major
oil conference this week.[]
Saudi Arabia wants to keep prices in the $70 to $80 range,
and most other OPEC members are comfortable with this level, a
person familiar with Saudi policy said Monday. []
Top energy officials and oil company executives from 64
countries are meeting in Cancun, Mexico, this week for the
biannual International Energy Forum. []
(Additional reporting by Gene Ramos in New York, Joe Brock in
London and Fayen Wong in Perth; Editing by Lisa Shumaker)
