* U.S. crude futures extend 2010 intraday peak to $85.22
* North Sea Brent crude oil jumps to over $84 barrel
* Investment inflows seen at start of new quarter
* Coming Up: U.S. non-farm payrolls for March on Friday
(Recasts, updates prices, market activity, changes byline,
dateline, previously LONDON)
By Gene Ramos
NEW YORK, April 1 (Reuters) - Oil hit a fresh 18-month high
on Thursday as upbeat U.S. economic data prompted fresh fund
buying at the start of the new quarter and the dollar weakened
against the euro and a basket of currencies.
U.S. crude for May delivery <CLc1> climbed $1.46 to hit
$85.22 a barrel, the highest intraday price since Oct. 9, 2008,
before slipping back to around $85 by 12 p.m. EDT (1700 GMT).
The contract had settled at $83.76 on Wednesday, its highest
close since October 2008.
London ICE Brent <LCOc1> climbed $1.63 to a high of $84.33
before easing a little to trade around $84.10.
Prices were up for a fourth consecutive session as traders
saw the improving outlook on economic recovery as a sign of
better oil demand ahead.
The dollar shifted lower against a basket of currencies
<.DXY>, a factor that usually encourages commodities buying.
The dollar earlier rose against the euro. []
Oil markets have ignored Wednesday's government report of
the ninth consecutive weekly build in U.S. crude stocks, and a
surprise, if small, rise in gasoline supplies. []
"Many are looking at the fact that total implied refined
product demand is now in positive territory versus both last
year and the five year average for the same week," Dominick
Chirichella, senior partner, Energy Management Institute in New
York, said in a report.
The number of Americans filing new claims for jobless
benefits fell last week and factory activity in March hit its
highest level in more than 5-1/2 years, bolstering confidence
of a continued expansion in the economy. []
Crude oil futures will not trade on Friday in either New
York or London because of the Easter holiday.
"Upward momentum is very strong," said Eugen Weinberg, head
of commodities research at Commerzbank in Frankfurt. "The
market is rising even with a stronger dollar and even after
what were bearish figures on U.S. inventory levels."
"Money is flowing into commodities at the beginning of the
new quarter from all sorts of investors, including funds."
U.S. government data showed U.S. crude inventories rose by
2.9 million barrels to 354.2 million barrels last week,
Gasoline stocks logged an unexpected 300,000 barrel gain.
With commodities markets still closely watching economic
developments, investors awaited Friday's non-farm U.S. payrolls
for March, forecast to have increased in a Reuters survey.
A rise would mark only the second time payrolls have risen
since the recession started in December 2007, although this
might be partly on the back of hiring for the 2010 census.
"SIMMERING TENSIONS"
"We suspect that with the dollar no longer rallying, (at
least for now), commodity markets have been able to build a
head of steam. In addition, simmering geopolitical tensions
could also be at work," said Edward Meir at brokers MF Global.
He said talk of a possible new round of sanctions against
Iran, maybe within weeks rather than months, could be
underpinning the market. But he added a note of caution:
"With respect to short-term pricing trends, we suspect
there might be a temporary pause in the rally," Meir said.
U.S. front-month crude oil rose 5.5 percent in the first
quarter, its fifth consecutive gain. But although it has more
than doubled from a December 2008 low, it is still well short
of a record high near $150 a barrel hit earlier that year.
After wild swings in the past two years, oil has stabilized
recently near the range favored by members of the Organization
of the Petroleum Exporting Countries between $70 and $80.
Last quarter, oil peaked at $83.95 a barrel in January to
as low as $69.50 in February, a range of less than $15.
(Additional reporting by Robert Gibbons in New York,
Christopher Johnson in London; Alejandro Barbajosa in
Singapore; Editing by Marguerita Choy)
