* Dollar holds lows against euro after U.S. inflows data
* European ministers suggest Greece needs extra deficit cuts
* Iran says talks on nuclear fuel swap continue
(updates prices, adds U.S. data)
By Jo Winterbottom
LONDON, Feb 16 (Reuters) - Oil jumped more than $2 per
barrel to over $76 on Tuesday, responding to a euro clambering
higher against the dollar and supported by growing tensions over
sanctions against Iran.
U.S. crude for March delivery <CLc1> touched a session high
of $76.18 per barrel, up $2.05, before easing back to be up
$1.86 at $76 by 1451 GMT.
The benchmark Brent contract for April delivery <LCOc1> was
trading up $2.19 per barrel at $74.70 after having touched an
intra-day peak of $74.75 earlier.
Trading volumes continued light with much of Asia shut for
the Lunar New Year holiday and U.S. markets opening after
Monday's closure for Presidents' Day. There was no settlement
price on Monday as floor activity on the New York Mercantile
Exchange was closed.
"Macro pessimism is definitely fading away as long as a
resolution (to Greece's problems) is not far away," said Amrita
Sen, energy analyst at Barclays Capital.
"Geopolitical rumblings, especially Nigeria, in the
background are definitely helping prices," Sen added.
Iran's president, Mahmoud Ahmadinejad, said talks were still
going on over a proposed nuclear fuel swap and any country which
tried to impose new sanctions on Iran would regret its actions.
U.S. Secretary of State Hilary Clinton has sought backing
from oil giant Saudi Arabia to help win Chinese support for
additional sanctions. []
In Nigeria, Acting President Goodluck Jonathan is looking
for swift progress reviving an amnesty programme in the
oil-producing Niger Delta where years of attacks by militants
have disrupted supplies. []
NEW DEADLINES FOR GREECE
On the foreign exchange markets, the euro rose against the
dollar as traders reckoned the single currency's battering in
past weeks over Greek's debt problems might have gone too far.
[]
The dollar held to its losses against the euro after a U.S.
Treasury report showing the country's net overall capital
inflows jumped to $60.9 billion in December from $30.7 billion
in November. []
European ministers told Greece it may need to take further
steps to bring its swollen debt under control and calm financial
markets. []
But many investors remain cautious about buying the single
currency on uncertainty that debt problems in Greece will be
resolved quickly.
That kept the euro's gains fragile as ministers met in
Brussels on Tuesday and the single currency was trading around
$1.3651, off a high of $1.3682.
A strong dollar tends to pressure dollar-priced commodities
as they become more expensive for holders of other currencies.
For a graphic on the performance of commodities in euro
terms, click on the following link:
http://graphics.thomsonreuters.com/0210/CMD_EUR0210.gif
Further underpinning the euro was a report that German
investor sentiment fell less sharply than expected in February,
suggesting Europe's largest economy might be more resilient than
feared. []
Expectations of an economic recovery have supported oil
prices near OPEC's comfort zone and the price of crude, which
went from a record in July 2008 above $147 to less than $33 at
the end of that year, has traded in a relatively tight $15 range
between $69 and $84 a barrel since the beginning of October.
U.S. oil inventory reports will be published a day later
than usual this week because of Monday's holiday. The American
Petroleum Institute will release statistics collated from
industry on Wednesday, followed by government data from the
Energy Information Administration on Thursday.
(Additional reporting by Alejandro Barbajosa in Singapore;
editing by James Jukwey)
