* Brent, U.S. crude rise over $2 after U.S. jobless data
* Brent headed for 23 pct qtrly gain, biggest since Q2 2008
* U.S. crude set for near 16 pct qtrly gain
* Fall in U.S. weekly jobless claims data exceeds forecast
(Updates price, adds U.S. jobless data impact)
By Jessica Donati
LONDON, March 31 (Reuters) - Oil prices rose over $2 on
Thursday, led by Brent which was heading for its second biggest
quarterly rise, touching $117.70 a barrel as Middle East supply
worries led concerns.
U.S. crude prices rallied to within 18 cents of its year
high of $106.95, now the only major technical barrier to a
larger move higher, according to analysts.
Oil prices built on early gains after U.S. data showed
jobless claims fell a four-week low and the second lowest since
July 2008, after prices had turned higher on unrest in the
Middle East near the start of the session.[]
"The twin shocks of Libya and Japan have broadly been priced
in, and the volatility can be attributed to oil returning to its
pattern of moving on bullish economic news," said Simon Wardell,
an oil analyst at Global Insight.
Brent crude for May <LCOc1> was up $2 to $117.13 barrel at
1359 GMT, within sight of a 2-1/2-year high near $120 on Feb.
24. Brent had fallen below $108 in the aftermath of Japan's
March 11 earthquake and tsunami, but is now on course to finish
the quarter over 23 percent higher.
U.S. crude <CLc1> was up $1.96 to $106.23, heading for a
near 16 percent quarterly gain.
Traders, analysts and investors see a new floor for prices
around $100 a barrel, supported by supply risks and economic
growth after the most turbulent and volatile quarter for the oil
market since the end of 2008.
WAR IN LIBYA
The prospect of a protracted civil war in Libya remained as
forces loyal to Libyan leader Muammar Gaddafi regained key oil
ports at Ras Lanuf and Brega on Wednesday, underscoring the
vulnerability of rebel forces in the absence of Western air
strikes. []
Gaddafi's foreign minister defected and flew to Britain on
Wednesday, while government sources told Reuters that U.S.
President Barack Obama had signed a secret order authorising
covert U.S. government support for rebel forces. []
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More on Middle East unrest: [] []
Libya graphics http: //link.reuters.com/neg68r
Interactive graphic http://link.reuters.com/puk87r
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Market attention was also focused on Bahrain, where dozens
were missing and more than 300 were detained after a crackdown
targeting activists and Shi'ites, the opposition said on
Thursday. []
"Friday prayers may be a key issue supporting the market
now, and some of the focus is starting to shift back to Japan
and the cost of rebuilding the country," said Thorbjoern Bak
Jensen, an analyst at Global Risk Management.
In recent months, the end of Friday prayers has been a
favoured time for protests in the region.
Worries also mounted about Syria, where more than 60 people
have died in protests, after the president defied calls to lift
a decades-old emergency law and hundreds marched in Latakia on
Wednesday. []
In Yemen, the president's 32-year rule edged closer to
collapse after his efforts to appease protesters were snubbed by
the opposition. []
JAPANESE DEMAND
Lost nuclear power and reconstruction efforts could boost
Japanese demand for oil to generate electricity. The
International Energy Agency has said an additional 200,000
barrels per day will be needed after Japan's nuclear disaster.
But traders say the impact on world supply could be higher.
[]
A parcel bomb attack on a nuclear lobby group in Switzerland
highlighted the backlash against nuclear development plans in
the aftermath of the Japanese disaster at Fukushima.
[]
"The nuclear issue in Japan could have quite significant
consequences. A lot of countries are now debating nuclear and
new building is on hold," a gasoil trader said.
But others say lower Japanese output could ultimately
weaken imports, balancing against a further drop in oil supply
from the Middle East.
"There seems to be a statistical surplus in the system given
that Saudi production has more or less offset the Libyan
shortfall, while weak Japanese imports will go a long way in
further alleviating demand pressures," Edward Meir, senior
commodity analyst at MF Global, said in a note.
(Additional reporting by Nia Williams, Claire Milhench and
Alejandro Barbajosa; editing by Keiron Henderson)
