* Brent premium to U.S. crude widens toward $7
* OPEC shrugs off concerns about $100 oil
* U.S. crude extends losses after jobless claims data
(Updates with US data, prices, Trichet)
By Claire Milhench
LONDON, Jan 13 (Reuters) - Brent oil futures climbed towards
$100 a barrel on Thursday, piling pressure on OPEC to raise
production to prevent high prices hurting the world economy.
But OPEC member Libya shrugged off concerns about oil at
$100, saying there was no need for OPEC to add supplies.
"We think there is enough supply and there should not be any
meeting at this point in time," Libya's Shokri Ghanem told
Reuters. [] His comments were supported by a second
Gulf delegate. []
European benchmark Brent <LCOc1> hit a session high of
$98.66, close to a 27-month high touched the previous day.
By 1425 GMT, it was 2 cents higher at $98.14, maintaining an
unusual premium to U.S. crude <CLc1>, which was down 14 cents at
$91.72 a barrel.
U.S. crude futures extended losses after U.S. jobless claims
rose unexpectedly by the biggest amount in about six months
[], and December producer prices rose, raising
fears about inflation and possible tightening.
"The jobless claims were disappointing and the producer
prices came in a bit hot and might make a case for the Fed to
remove some stimulus. But the dollar weakening may be tempering
losses," said Phil Flynn, an analyst at PFGBest Research in
Chicago.
Analysts have attributed Brent's strength to a combination
of technical factors and investment flows, but this could fade
away following the expiry of the front-month contract on Friday.
"It appears to be only a question of time until the
$100-per-barrel mark will be surpassed, although it remains
highly questionable whether such levels can be sustained
throughout Q1 2011 from a fundamental perspective," said
analysts at JBC Energy in a note.
WARNING
The most bullish analysts, however, warned of a risk of a
more sustained rally, which could hinder the economic recovery,
if producers do not add oil to the market.
"If OPEC is not being responsible ... we could end up in a
situation similar to 2008, when we had a big rise in crude oil
prices and a subsequent collapse," said Sabine Schels, commodity
strategist at Merrill Lynch.
In July 2008, oil vaulted to a record of nearly $150 a
barrel before sinking to just above $30 in December of the same
year when OPEC agreed record supply cuts, which are still in
place. OPEC is not due to meet to review its policy until June.
Compared with two years ago, global inventories are
relatively comfortable and OPEC has ample spare capacity.
But inflationary fears are beginning to reassert themselves.
Jean-Claude Trichet, president of the European Central Bank,
said that "very close monitoring of price developments" was
warranted, even while the ECB kept rates at 1.0 percent as
expected.
Last month euro zone inflation hit 2.2 percent -- the first
time in two years that it has risen above the bank's target of
just below 2 percent.
(Additional reporting by Dmitry Zhdannikov, Alex Lawler and
Robert Gibbons; editing by Jane Baird)
