* Copper rally after earthquake lifts markets
* Euro stable vs dollar on prospect of aid for Greece
* Traders focus on key U.S. jobs data this week
(Updates prices, adds comment)
LONDON, March 1 (Reuters) - Oil extended gains to rise above
$80 a barrel on Monday, lifted by a rally in the copper price, a
steady U.S. dollar and bullish global economic data.
U.S. crude for April delivery <CLc1> rose 79 cents to $80.45
by 1002 GMT, after having climbed by as much as 96 cents. On
Friday, the contract settled up $1.49 at $79.66 and posted its
biggest monthly percentage gain since May 2009.
London Brent crude <LCOc1> rose 76 cents to $78.35.
Copper futures jumped to their highest in more than five
weeks on Monday after a massive earthquake in top producer Chile
on Saturday sparked supply worries and threats of a new 2010
peak for the widely-used metal.[]
"These raw materials have a huge correlation, because when
China and other emerging markets pick up speed they will need
copper and steel and fuel," said analyst Andy Sommer at EGL in
Switzerland.
"Overall today's market move is also related to bullish
sentiment in general and a bit of dollar weakness."
Chile's state energy company ENAP said it would raise diesel
imports after two of its refineries were damaged by Saturday's
8.8 magnitude earthquake. Analysts said the move would have a
limited impact on crude prices.[]
SOFTER DOLLAR
The euro was stable against the dollar on Monday, as signs
emerged that a support deal for Greece may be near. Commodities
priced in a weakening U.S. currency become more expensive to
holders of other currencies.[]
"Oil prices are also benefitting right now by the fact that
the dollar is weaker against the euro," said senior commodity
analyst Ed Meir at MF Global.
Any progress towards an aid plan for Athens could boost the
euro, as well as bond prices and banking stocks in Greece and
other indebted countries on the euro zone's southern periphery.
But any rally by the euro might be brief, because investors
would also worry that a dangerous precedent was being set for
Germany and other rich states in the zone to take on the
liabilities of poorer ones.
IRANIAN EXPORTS
On Sunday a senior military official from Iran, the world's
fourth-largest exporter of crude, said the country could make
European nations suffer by cutting off energy supplies and could
target any adversary with its missiles.[]
Iran is disputing its nuclear energy programme with the
United States and its allies, who say it is aimed at developing
weapons. Tehran says it is only interested in power generation
and medical research.
Oil traders will look to economic reports this week, with
key focus on U.S. jobless data on Friday, that should give more
clues on consumer spending.
Other economic indicators due include U.S. manufacturing on
Monday and U.S. home loans on Wednesday.
Positive economic data on Friday from the United States,
which saw the world's largest economy grow faster in the fourth
quarter than initially thought, also helped increase investors'
appetite for more risky assets, lending further support to oil.
(Reporting by Fayen Wong in Perth, editing by Amanda Cooper)
