* US eyes home loan subsidies in rescue plan
* Congress sets final votes on stimulus for Friday
* Algeria says OPEC compliance to hit 100 percent
By Fayen Wong
PERTH, Feb 13 (Reuters) - U.S. oil prices rose above $34 a
barrel on Friday, snapping a five-day losing streak, as a late
rally in U.S. stocks on news that the U.S. government was
working on a mortgage plan for troubled homeowners helped lift
sentiment.
But lingering worries that the global economic downturn is
taking its toll on oil consumption limited oil's gains.
U.S. crude <CLc1> for March delivery rose 51 cents or 1.5
percent to $34.49 a barrel, after falling $1.96 in the previous
session to settle at $33.98 a barrel, the lowest since Dec. 19.
London Brent crude <LCOc1> dipped 4 cents to $45.99 a
barrel, extending a rare premium over U.S. crude to more than
$11, because of a glut at the main U.S. storage hub in Oklahoma
and supply problems in Nigeria that tend to have a bigger
impact on European supplies.
"The U.S. stimulus plans may be helping to boost market
sentiment but the movement in oil prices this morning is still
relatively moderate," said David Moore, a commodities analyst
at the Commonwealth Bank of Australia.
U.S. oil prices have lost about 14 percent this week and
are languishing at a three-week low, pressured by persistent
demand worries and doubts over the efficacy of the U.S.
government's banks rescue plan.
Oil's losses on Thursday were exacerbated by news that the
number of people staying on unemployment benefits in the United
States rose by 11,000 to a record 4.810 million in the last
week of January. []
"Concerns about consumption weakness and the build-up in
crude stocks in Cushing will continue to weigh on markets,"
Moore said.
In the short term, analysts believe the market's direction
would be influenced by movements in stock markets.
News that the Obama administration was working on a
programme to subsidise mortgage payments for troubled
homeowners renewed hopes the host of measures could pull the
world's largest economy out of its steep tailspin, sparking a
late U.S. stocks rally.
Asian stocks excluding Japan <.MIAPJ0000PUS> rose 1.6
percent on Friday, with the Nikkei <> up 2 percent and
Australia's resources-laden index gaining 1 percent.
Investors have their eyes peeled on developments in the
United States, as Democratic leaders in the U.S. Senate and
House of Representatives wrapped up a last minute tax cut and
spending details in the economic stimulus bill, setting votes
for Friday by both chambers. []
Algerian Oil Minister Chakib Khelil told Reuters on
Thursday that there was a 50 percent chance the cartel could
agree to deepen cuts when it meets in March, and said that
compliance among members was solid. []
"We have 85 percent which is unusual for compliance. By
meeting time, we will probably have 100 percent," Khelil said.
(Editing by Ben Tan)
