* U.S. jobless claims, factory data help lift prices
* Japan in desperate bid to avert nuclear catastrophe
* Bahrain nabs 7 oppositionists, Yemen clashes wound 84
* Libyan army marching towards rebel-held Benghazi
* Coming Up: NYMEX April crude options expire Thursday
(Updates prices, market activity, details, adds table with
links)
By Gene Ramos
NEW YORK, March 17 (Reuters) - Oil prices rallied by more
than 3 percent on Thursday as unrest in the Middle East and
North Africa added more worries about supply disruptions even
as investors weighed impact on demand of Japan's earthquake
disaster.
Bahrain's ongoing crackdown on Shi'ite protesters after
Saudi Arabia sent in troops has provoked a complaint from Iran
lodged before the United Nations, sparking worries of a wider
regional unrest that could stifle oil production.
[]
At the same time, analysts said damage to Libya's oil
infrastructures in the wake of a rebellion may require a long
period of repairs before it can recover production currently
down about two-thirds of its normal 1.6 million barrel per day
output.
In Japan, the government mounted a desperate bid to avert a
catastrophe at a crippled nuclear complex, on the sixth day
after a disastrous earthquake and tsunami struck its northern
region, severely affecting demand in the world's third largest
oil consumer. []
"Prices are up as focus remains on tensions in the Middle
East, particularly with the Saudi intervention in Bahrain" said
Stephen Schork, editor of the Schork Report, a daily
commentator on the energy markets, in Villanova, Pennsylvania.
By 12:45 p.m. EDT (1645 GMT), Brent crude for May delivery
<LCOc1> rose $3.47 to $114.07 a barrel, after hitting a session
high of $114.20.
U.S. crude for April delivery <CLJ1> gained $2.91 to
$100.89, having rallied earlier to $100.97.
Both contracts continued to rebound from three-week lows
struck on Wednesday when pessimism about Japan's nuclear crisis
somewhat edged out tensions in the Middle East.
U.S. crude's sharp rise was also aided by upbeat data on
jobless benefit claims and factory activity in the Mid-Atlantic
region. Data showing that inflation remained contained despite
rising prices also helped boost investor mood. []
MIDEAST TENSIONS UNABATED
State-owned Bahrain Petroleum Co (BAPCO) has partly shut
down production due to staff shortages caused by political
unrest in Bahrain, trade sources said. []
Bahrain arrested seven opposition leaders, a day after its
crackdown on protests among the Shi'ite Muslim majority drew
rare U.S. criticism and raised fears of a regional conflict.
[]
Libyan troops pushed forward towards the insurgent
stronghold of Benghazi and launched air raids on its outskirts
as Washington raised the possibility of air strikes to stop
Muammar Gaddafi's forces. []
In Yemen, security forces used live fire and tear gas on on
anti-government protesters, wounding at least 84, activities
said. []
"The focus is back on continuing unrest in the Middle East
and what will be a lot of disruption in Libya for a long time,"
said Christopher Bellew, an oil trader at Bache Commodities.
"The risk is more to the upside -- there was a lot of long
liquidation on that sharp sell off at the beginning of the
week, so we will work our way a bit higher probably."
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Take a Look: Middle East, Africa unrest Japan disaster
[]
Take a Look: Japan disaster []
Picture, graphic packages: http://link.reuters.com/kuw58r
PDF on the impact on commodities and energy markets:
http://link.reuters.com/bum58r
LIVE: http://live.reuters.com/uk/Event/Japan_earthquake2
Reuters Insider show on Oil Price Tipping Points:
http://link.reuters.com/qet58r
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(Additional reporting by Robert Gibbons in New York; Claire
Milhench in London; Alejandro Barbajosa in Singapore; Editing
by Marguerita Choy)
