* Brent touches $117.90, highest in almost four weeks
* U.S. crude up to $107.65, highest since September 2008
* Coming Up: U.S. non-farm payrolls for March; 1230 GMT
(Recasts throughout, previous SINGAPORE)
By Nia Williams
LONDON, April 1 (Reuters) - Oil prices rose on Friday, with
Brent nearing $118, as investors anticipated U.S. payrolls data
later in the session will confirm the improving economic outlook
of the world's largest oil importer.
Fighting in Libya, where Muammar Gaddafi's forces appear to
have regained the upper hand, also supported crude prices as the
prospect of a drawn-out conflict reduced expectations of lost
Libyan oil returning to the market in the near future.
Brent futures for May delivery <LCOc1> rose 19 cents to
$117.55 by 0901 GMT, close to the highest level in almost four
weeks. U.S. crude futures <Clc1> were up 35 cents to $107.07
after earlier hitting $107.65, an intraday peak last touched in
September 2008.
"In the past two days, the financial markets have been the
main driver of higher crude oil prices, but in the back of every
investor's mind there is the unrest in the Middle East and that
is supporting the market," said ANZ Bank analysts Serene Lim.
Oil prices gained traction in the second half of this week
after a report on Thursday showed U.S. jobless claims fell last
week and data pointed to improving employment in the Midwest.
A Reuters poll suggested the U.S. non-farm payrolls data for
March, due at 1230 GMT, would show a second straight month of
solid job growth, adding 190,000 jobs. A rise would imply the
labour market has turned a corner after lagging the broader
economic recovery. []
While improving economic performance is lifting industrial
demand for energy in the U.S., high prices at the pump are
damaging consumer confidence and capping gasoline demand.
LIBYA, MIDDLE EAST TURMOIL
Libyan rebels cheered the defection of the foreign minister
on Thursday as a sign Gaddafi's rule was crumbling, but U.S.
officials warned he was far from beaten and made clear they
feared entanglement in another war. []
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Libya Graphics http://link.reuters.com/neg68r
Interactive graphic http://link.reuters.com/puk87r
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But analysts warned it was doubtful Libyan crude would reach
world markets on a sustained basis because of the risk of
loading cargoes and said recent advances by government troops
were bullish for oil prices.
"This means the likelihood of a return to some normalcy in
terms of oil production is pushed back somewhat further, as
investors, instead, start to discount the more troubling
scenario of a bloody quagmire setting in, meaning that 1.1
million barrels a day of oil exports could be sidelined
indefinitely," said MF Global analyst Edward Meir in a note.
Bahrain has stepped up arrests of cyber activists and
Shi'ites and investors will also keep a close eye on events in
Syria and Yemen. The conclusion of Friday prayers is a favoured
time for protests in the region. []
Reuters technical analysis suggests Brent will continue to
rise towards $119.79 as a short-term uptrend pointing to $123.46
per barrel has been established, although there is a minor
resistance zone between $118.37 and $118.50. []
(Additional reporting by Alejandro Barbajosa, editing by
William Hardy)
