* U.S. eyes home loan subsidies in rescue plan
* Congress sets final votes on stimulus for Friday
* Algeria says OPEC compliance to hit 100 percent
(Updates prices)
By Fayen Wong
PERTH, Feb 13 (Reuters) - Oil prices rose above $34 a
barrel on Friday, snapping a five-day losing streak, as a late
rally in U.S. equities on news that the government was working
on a mortgage plan for troubled homeowners helped lift
sentiment.
But lingering worries that the global economic downturn is
taking its toll on oil consumption limited oil's gains.
U.S. crude <CLc1> for March delivery rose 50 cents, or 1.5
percent, to $34.48 a barrel at 0744 GMT, after falling $1.96 in
the previous session to settle at $33.98 a barrel, the lowest
since Dec. 19.
London Brent crude for the new front-month of April <LCOc1>
dipped 20 cents to $45.83 a barrel.
The Brent March contract expired on Thursday at $44.65,
extending its premium to U.S. crude to more than $10, due to a
glut at the main U.S. storage hub in Oklahoma and Nigerian
supply problems that tend to have a bigger impact on European
supplies.
But analysts said the premium for the April contract is
less than $4.00, as inventories ease at Cushing, Oklahoma, the
delivery point for the U.S. futures contract.
"The U.S. stimulus plans may be helping to boost market
sentiment but the movement in oil prices this morning is still
relatively moderate," said David Moore, a commodities analyst
at the Commonwealth Bank of Australia.
U.S. oil prices have lost about 14 percent this week and
are languishing at a three-week low, pressured by persistent
demand worries and doubts over the efficacy of the U.S.
government's banks rescue plan.
Oil's losses on Thursday were exacerbated by news that the
number of people staying on unemployment benefits in the United
States rose by 11,000 to a record of 4.810 million in the last
week of January. []
In the short term, analysts believe the market's direction
would be influenced by movements in stock markets.
News that the Obama administration was working on a
programme to subsidise mortgage payments for troubled
homeowners renewed hopes the host of measures could pull the
world's largest economy out of its steep tailspin, sparking a
late U.S. stocks rally.
Asian stocks excluding Japan <.MIAPJ0000PUS> rose 2.2
percent on Friday, with the Nikkei <> up 1 percent and
Australia's resources-laden index gaining 1.3 percent.
Algerian Oil Minister Chakib Khelil told Reuters on
Thursday that there was a 50 percent chance the cartel could
agree to deepen cuts when it meets in March, and said that
compliance among members was solid. []
"We have 85 percent which is unusual for compliance. By
meeting time, we will probably have 100 percent," Khelil said.
(Additional reporting by Dharmasari Haroun, Editing by Ramthan
Hussain)
