* Weaker dollar, options expiry lift U.S. prices
* Brent oil weaker ahead of May contract expiry
* U.S. refinery fire adds to supply concerns
* Coming up: CFTC positions data on Friday
(Recasts, updates prices, market activity, adds byline)
By Gene Ramos
NEW YORK, April 14 (Reuters) - U.S. crude oil futures rose
on Thursday, reversing early losses as a weaker dollar offset
worries that high prices would erode demand.
The dollar fell after U.S. data showed jobless claims rose
unexpectedly last week and producer prices increased in March.
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"When the (producer prices) and the weekly job claims
number came out we saw a reversal in the dollar and we saw a
corresponding (rise) in oil prices," said Stephen Schork,
editor of The Schork Report, in Villanova, Pennsylvania.
Earlier, news that Sunoco <SUN.N> had shut a
gasoline-making unit at its 335,000-barrels per day
Philadelphia, Pennslyvania, refinery after a small fire helped
boost crude futures. []
On Wednesday, U.S. government data showed U.S. gasoline
stockpiles plunged 7 million barrels last week, the biggest
weekly drop in more than 12 years, raising concerns about
gasoline supplies ahead of the summer driving season.
In London, Brent crude oil <LCOc1> fell ahead of the May
contract's expiration, trading 53 cents lower at $122.35 a
barrel, by 1:30 p.m. EDT (1730 GMT).
U.S. crude for May delivery <CLc1> gained 79 cents at
$107.90 a barrel.
Options on the U.S. May crude contract also expire on the
day, adding upward pressure as concentrations of calls are at a
level above current prices.
DOLLAR SLIPS, LIBYA NEWS SIDELINED
First-time claims for U.S. unemployment benefits rose
unexpectedly last week while producer prices rose slightly
faster than forecast in March from February. The dollar fell
against a basket of currencies after the data. <.DXY>
"The spike in jobless claims back over 400,000 hit the
dollar, which once again is supporting energy and precious
metal prices. It's a troubling data point from an area that we
thought some progress was being made," said John Kilduff, a
partner at Again Capital LLC in New York.
Libyan rebels begged for more NATO air strikes, saying they
faced a massacre from government artillery barrages on the
besieged city of Misrata. [].
But NATO allies rebuffed French and British calls to
contribute more actively to the air war in Libya despite fears
of a military stalemate.
Libyan rebels have said they are exporting a minimal amount
of crude from fields pumping around 100,000 barrels per day,
far less than usual production of 1.6 million bpd.
Elsewhere, oil market reaction to news that inflation in
China accelerated faster than expected in March was muted.
But China's first-quarter GDP figures and March consumer
price data will be released on Friday will be scrutinized if
there are signs growth getting out of control. That, analysts
saide, could prompt further monetary tightening and potentially
affect oil demand.
(Additional reporting by Matthew Robinson and Robert Gibbons
in New York; Nia Williams in London; and Florence Tan in
Singapore; Editing by David Gregorio)
