* Brent premium to U.S. crude widens toward $7
* OPEC member shrugs off concerns about $100 oil
* U.S. crude extended losses after jobless claims data
(Updates with US weekly jobless claims, prices, OPEC)
By Claire Milhench
LONDON, Jan 13 (Reuters) - Brent oil futures climbed towards
$100 a barrel on Thursday, piling pressure on OPEC to raise
production to prevent high prices hurting the world economy.
But OPEC member Libya shrugged off concerns about oil at
$100 saying there was no need for OPEC to add supplies.
"We think there is enough supply and there should not be any
meeting at this point in time," Libya's Shokri Ghanem told
Reuters. []
European benchmark Brent <LCOc1> hit a session high of
$98.66, close to a 27-month high touched the previous day.
By 1338 GMT, it was 16 cents higher at $98.28, maintaining
an unusual premium to U.S. crude <CLc1>, which was down 16 cents
at $91.70 a barrel.
U.S. crude futures extended their losses after weekly
U.S.jobless claims unexpectedly posted their biggest jump in six
months [].
Analysts have attributed Brent's strength to a combination
of technical factors and investment flows, but this could fade
away following the expiry of the front-month contract on Friday.
"It appears to be only a question of time until the
$100-per-barrel mark will be surpassed, although it remains
highly questionable whether such levels can be sustained
throughout Q1 2011 from a fundamental perspective," said
analysts at JBC Energy in a note.
The most bullish analysts, however, warned of a risk of a
more sustained rally, which could hinder the economic recovery,
if producers do not add oil to the market.
"If OPEC acts responsibly, they will increase output early
this year. We do believe that in this kind of environment OPEC
will be forced to raise production," said Sabine Schels,
commodity strategist at Merrill Lynch.
"If OPEC is not being responsible ... we could end up in a
situation similar to 2008, when we had a big rise in crude oil
prices and a subsequent collapse."
In July 2008, oil vaulted to a record of nearly $150 a
barrel before sinking to just above $30 in December of the same
year when OPEC agreed record supply cuts, which are still in
place. OPEC is not due to meet to review its policy until June.
Compared with two years ago, global inventories are
relatively comfortable and OPEC has ample spare capacity.
Hefty inventories in the United States, the world's biggest
oil burner, have pressured U.S. crude futures.
Demand for fuel in the northeast of the United States, the
world's biggest heating oil consumer, has risen following the
second major blizzard of the winter, although gasoline use has
dropped as some drivers stay at home. []
The European Central Bank kept rates at 1.0 percent as
expected but the market was looking for guidance from president
Jean-Claude Trichet as to when the ECB might begin tightening.
Last month euro zone inflation hit 2.2 percent -- the first
time in two years that it has risen above the bank's target of
just below 2 percent.
(Additional reporting by Dmitry Zhdannikov and Alex Lawler;
editing by Keiron Henderson)
