* Brent headed for 22 pct qtrly gain, biggest since Q2 2009
* U.S. crude set for 15 pct qtrly gain
* Fall in U.S. weekly jobless claims data exceeds forecast
(Updates prices, adds Bahrain, U.S. jobless data)
By Jessica Donati
LONDON, March 31 (Reuters) - Brent crude rose over $1 on
Thursday to $116.78 a barrel, heading for its biggest quarterly
gain in almost two years as Middle East supply worries led
concerns.
Traders, analysts and investors see a new floor for prices
around $100 a barrel, supported by supply risks and economic
growth after the most turbulent and volatile quarter for the oil
market since the end of 2008.
Brent crude for May <LCOc1> was up $1.22 to $116.35 barrel
at 1235 GMT, less than $4 from a 2-1/2-year high near $120 on
Feb. 24. Brent fell below $108 in the aftermath of Japan's March
11 earthquake.
U.S. crude <CLc1> was up $1.04 to $105.31, heading for a
more than 15 percent quarterly gain.
Market attention remained firmly on the Middle East where
dozens were missing and more than 300 were detained after a
crackdown in Bahrain targeting activists and Shi'ites, the
opposition said on Thursday. []
"Friday prayers may be a key issue supporting the market
now, and some of the focus is starting to shift back to Japan
and the cost of rebuilding the country," said Thorbjoern Bak
Jensen, an analyst at Global Risk Management.
In recent months, the end of Friday prayers has been a
favoured time for protests in the region.
Worries also mounted about Syria, where more than 60 people
have died in protests, after the president defied calls to lift
a decades-old emergency law and hundreds marched in Latakia on
Wednesday. []
In Yemen, the president's 32-year rule edged closer to
collapse after his efforts to appease protesters were snubbed by
the opposition. []
JAPANESE DEMAND
Japan's oil product sales rose 0.8 percent in February from
a year earlier as improvement in the economy helped boost
gasoline demand for a fourth straight month. The outlook for
consumption in the aftermath of the earthquake and tsunami
remained uncertain. []
Lost nuclear power and reconstruction efforts could boost
Japanese demand for oil to generate electricity. The
International Energy Agency has said an additional 200,000
barrels per day will be needed after Japan's nuclear disaster.
But traders say the impact on world supply could be higher.
[]
A parcel bomb attack on a nuclear lobby group in Switzerland
highlighted the backlash against nuclear development plans in
the aftermath of the Japanese disaster at Fukushima.
[]
"The nuclear issue in Japan could have quite significant
consequences. A lot of countries are now debating nuclear and
new building is on hold," a gasoil trader said.
But others say lower Japanese output could ultimately
weaken imports, balancing against a further drop in oil supply
from the Middle East.
"There seems to be a statistical surplus in the system given
that Saudi production has more or less offset the Libyan
shortfall, while weak Japanese imports will go a long way in
further alleviating demand pressures," Edward Meir, senior
commodity analyst at MF Global, said in a note.
WAR IN LIBYA
The prospect of a protracted civil war in Libya remained as
forces loyal to Libyan leader Muammar Gaddafi regained key oil
ports at Ras Lanuf and Brega on Wednesday, underscoring the
vulnerability of rebel forces in the absence of Western air
strikes. []
Gaddafi's foreign minister defected and flew to Britain on
Wednesday, while government sources told Reuters that U.S.
President Barack Obama had signed a secret order authorising
covert U.S. government support for rebel forces. []
[]
The United States is part of a coalition with NATO members
and some Arab states, which is conducting air strikes on Libyan
government forces under a U.N. mandate aimed at protecting
civilians opposing Gaddafi.
Libyan oil shipments remain at a standstill, with no one
attempting to hire tankers due to violence and the impact of
sanctions, shipping sources said on Wednesday. []
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More on Middle East unrest: [] []
Libya graphics http: //link.reuters.com/neg68r
Interactive graphic http://link.reuters.com/puk87r
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Stocks headed for a third straight quarterly rise as the
euro advanced and improving economic outlook for the U.S.
supported worldwide gains. Weekly U.S. initial jobless claims
fell more than expected, to a four-week low and the second
lowest since July 2008 supporting oil prices.[]
"There has been good economic data out of Germany and strong
CPI numbers out of Europe. The euro is well bid, which has
helped push oil higher," said Rob Montefusco, a trader at Sucden
Financial.
(Additional reporting by Nia Williams, Claire Milhench and
Alejandro Barbajosa; editing by Jason Neely and Jane Baird)
