* Brent ends Q1 up $22.61 from Q4 2010
* U.S. crude posts 16.8 pct quarterly gain
* Coming up: U.S. March nonfarm payrolls data Friday
(Recasts, updates prices and market activity)
By Robert Gibbons
NEW YORK, March 31 (Reuters) - Oil prices jumped to their
highest close in 2-1/2 years on Thursday in thin end-of-quarter
trading that left Brent near a record quarterly rise of more
than $22 as Libya's conflict and Middle East unrest kept supply
threats in focus and U.S. economic data added lift.
Oil remained supported by geopolitical supply risks and
signs of economic growth after the most volatile quarter for
the oil market since the end of 2008, analysts said.
Prices built on early gains after a report that U.S.
jobless claims fell last week and data pointing to improving
Midwest employment, all coming ahead of the closely watched
March nonfarm payrolls report due on Friday. []
[]
"(E)nd of quarter positioning and today's jobless figures
again surprised on the favorable side with further economic
optimism likely to be on display tomorrow morning," Jim
Ritterbusch, president at Ritterbusch & Associates said in a
note.
Brent crude for May <LCOc1> rose $2.23 to settle at $117.36
a barrel, highest close since August 2008 and up 23.9 percent
for the quarter.
Brent reached $117.70 intraday on Thursday, leaving May
Brent's $118.42 contract high ahead of the front-month
2-1/2-year intraday peak near $120 struck on Feb. 24.
Brent's recovery comes after it fell below $108 in the
aftermath of Japan's March 11 earthquake and tsunami.
U.S. crude <CLc1> rose $2.45 to settle at $106.72, highest
close since September 2008, and jumping 16.8 percent for the
quarter.
Prices rose to $106.83 intraday, close to the March 7 peak
of $106.95 that is the highest intraday price since 2008.
"Crude bounced off $102.70 (on Tuesday), finding support
there, and Libya looks like it will be shut for awhile and with
the Middle East and improving economic data the market is
looking for a catalyst to take out the 2011 high," said Gene
McGillian, analyst, Tradition Energy in Stamford, Connecticut.
Trading volumes remained tepid, well below 30-day averages
for both Brent and U.S. crude.
CONFLICT IN LIBYA
Investors' belief that a protracted conflict in Libya will
keep exports shut off was reinforced as forces loyal to Muammar
Gaddafi took back oil ports at Ras Lanuf and Brega. Rebels
readying a counter-attack were both encouraged by and wary of
news of covert U.S. support and the defection of Gaddafi's
foreign minister. []
Libya's top oil official Shokri Ghanem said from Tripoli
that the country was continuing to produce some oil, although
output was much reduced. []
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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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MIDDLE EAST UNREST
Investors also eyed Bahrain, where dozens were missing and
more than 300 were detained after a crackdown targeting
activists and Shi'ites, the opposition said. []
"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.
The conclusion of Friday prayers has been a favored time
for protests in the region.
Protests and unrest in Syria and Yemen have also been part
of the geopolitical risk premium.
(Additional reporting by Jessica Donati, Nia Williams, Claire
Milhench in London and Alejandro Barbajosa in Singapore;
Editing by Marguerita Choy and David Gregorio)
