* Oil hits highest since Jan. 12
* China's premier addresses National People's Congress
* U.S. Feb nonfarm payrolls fell 36,000, less than forecast
(Recasts with U.S. jobs report)
By David Sheppard and Alex Lawler
LONDON, March 5 (Reuters) - Oil rose to a seven-week high
above $81 a barrel on Friday after a report showed the United
States lost fewer jobs than expected in February and on signals
China will maintain its economic stimulus measures.
U.S. employers cut 36,000 jobs in February, leaving the
unemployment rate unchanged at 9.7 percent, according to a
government report on Friday. Analysts had expected non-farm
payrolls to drop by 50,000. []
"Given the outlook for persistent job growth in the coming
months, this data is very supportive for energy prices," said
John Kilduff, partner at Round Earth Capital in New York.
U.S. crude for April <CLc1> gained $1.21 to $81.42 a barrel
by 1404 GMT. It traded as high as $81.54, the highest intra-day
price for a nearby contract since Jan. 12. Brent crude for April
<LCOc1> advanced $1.23 to $79.77.
Oil gained in spite of a stronger dollar, which can weaken
oil and other dollar-denominated commodities, as traders focused
on the economic growth implications of the jobs data. European
stocks gained and U.S. equity futures were up.
Signals that China will maintain its economic stimulus
measures supported prices earlier in the session. China is the
world's second-largest oil consumer, after the United States.
China's Premier Wen Jiabao, in his annual address to the
National People's Congress, said the country will continue an
appropriately easy monetary stance and an active fiscal policy.
[]
China escaped the worst of the global slump by ramping up
credit, slashing interest rates and launching a 4 trillion yuan
($585 billion) infrastructure programme in late 2008.
But in the past two months, China has restricted the amount
of money that banks can lend by enforcing higher cash reserve
ratios, aiming to prevent an over-heating of the economy.
STRAIT OF MALACCA
A risk of disruption to shipping in the Strait of Malacca
also supported prices.
Singapore raised alert levels in the city-state and beefed
up security at its airport and new casino resorts after a
warning by its navy on Thursday of possible attacks on oil
tankers in the Strait of Malacca. []
The Strait is a key shipping lane which carries about 40
percent of world trade, including an average of 15 million
barrels of crude oil every day.
New York crude has traded in a $69-$84 range over the past
few months amid uncertainty about the speed of the global
economic recovery. Some traders and analysts say currency
movements could dominate the oil price as the strength of demand
remains unclear during the recovery.
"Fundamentally, the oil market has yet to see some signs of
improving demand from OECD states, while we are also concerned
about the pretty much flat forward curve as investors still
harbour worries over the cyclical recovery," VTB Capital analyst
Andrey Kryuchenkov said.
Oil prices for contracts to be delivered in January 2012 are
less than $5 a barrel above the current oil price.
(Additional reporting by Alejandro Barbajosa in Singapore and
Robert Gibbons in New York; Editing by Keiron Henderson)
