* Prices buoyed by weaker dollar and signs of U.S. recovery
* Supported by stronger Asian shares after U.S. jobs data
* Money managers increase net NYMEX crude longs-CFTC
* Coming up: Euro zone March sentix index; 0930 GMT
(Recasts; updates prices)
By Osamu Tsukimori
TOKYO, March 8 (Reuters) - Crude oil extended gains to an
eight-week high above $82 a barrel on Monday, buoyed by a
weaker dollar and signs of an economic recovery in top oil
consumer, the United States.
Traders and analysts say currency movements could dominate
oil prices as demand strength stays unclear during the
recovery.
The euro <EUR=> rose 0.4 percent to $1.3675, helped at the
margins by growing support for debt-laden Greece. The dollar
index <.DXY>, which measures the greenback against a basket of
currencies, edged down 0.32 percent.
French President Nicolas Sarkozy promised Greece on Sunday
that euro-zone countries would help it overcome its financial
problems and vowed a crackdown on financial speculators who
Athens blames for its woes. []
Crude for April delivery <CLc1> was up 83 cents at $82.33 a
barrel by 0748 GMT, after touching $82.41 earlier, the highest
since $83.95 marked on Jan. 11.
London Brent crude <LCOc1> was up 86 cents at $80.75 after
hitting $80.78 earlier, the highest since Jan. 12.
New York crude has traded in a range of $69 to $84 over the
past few months amid uncertainty about the speed of the global
economic recovery.
"In the past few days, market moves have been led by
technicals," said Tomokazu Amano, analyst at Mitsubishi Corp
Futures & Securities in Tokyo.
"Now that $80 or higher is here to stay, we are seeing an
influx of speculative money from funds and others."
Money managers extended their net long crude oil futures
positions on the New York Mercantile Exchange in the week to
March 2, the Commodity Futures Trading Commission said on
Friday. []
The key speculator group hiked net long positions to
144,058 during the week, up from 132,504 in the week to Feb.
23.
Oil also got support from higher Asian shares, which
tracked a rally in the U.S. markets to an 18-month closing high
on Friday. Japan's Nikkei average and South Korean shares
closed up more than 1.5 percent.
"The strength in Asian shares was providing support, but
it's difficult to grasp the market's direction," said Ken
Hasegawa, a commodity derivatives sales manager at broker
Newedge in Tokyo.
"Although the market hit $82 today helped by the U.S. jobs
report, it's difficult to buy further."
CHINA DEMAND
Oil also got support after news that China, the world's
second-biggest oil consumer, will build two strategic oil
reserve bases in Guangdong province, at Huizhou and Zhanjiang.
[]
Chinese oil demand is likely to see a further boost in the
next few years as the country seeks crude to stash in its state
oil reserves, which it plans to expand rapidly in the coming
decade.
China's crude oil output will rise by 1-2 percent this
year, and state-owned China National Petroleum Corp (CNPC)
group will refine 11.4 percent more crude oil in 2010, a CNPC
executive said on Sunday. []
With oil prices within a "comfort zone" of $70-80 per
barrel and demand expected to revive, the Organisation of
Petroleum Exporting Countries (OPEC) looks set to keep its
production target unchanged on March 17, as it has done for
more than a year. []
Oil producers are pumping more crude than consumers need
but the oversupply is insufficient to have a big impact on the
market, Iran's OPEC governor said on Sunday. []
Oil market participants were also paying attention to the
election in Iraq. Bomb blasts and rocket and mortar fire killed
38 people as Iraqis voted on Sunday in an election they hoped
would distance their nascent democracy from years of sectarian
slaughter as U.S. troops pack up to leave. []
(Editing by Himani Sarkar)
