* Brent touches $117.90, highest in almost four weeks
* U.S. crude touches $107.65, highest since September 2008
* Coming Up: U.S. non-farm payrolls for March; 1230 GMT
(Adds J.P. Morgan comment, context on U.S. gasoline demand)
By Alejandro Barbajosa
SINGAPORE, April 1 (Reuters) - Brent crude rose towards $118
on Friday, touching its highest in almost four weeks, as
investors expect a positive U.S. payrolls report due later in
the day to reinforce belief that a job market improvement is
under way in the world's top oil importer.
Brent for May <LCOc1> rose 38 cents to $117.74 a barrel at
0707 GMT after earlier touching $117.90, the highest price since
March 7 and less than $2 from a 2-1/2-year high of almost $120
reached in February.
U.S. crude <CLc1> rose 58 cents to $107.30 after earlier
touching $107.65, an intraday peak since September 2008.
Oil prices gained traction in the second half of this week
after a report on Thursday showed U.S. jobless claims fell last
week and data pointed to improving employment in the Midwest.
"The market is expecting some positive payroll data from the
U.S. later today," said Serene Lim, a Singapore-based oil
analyst at ANZ Bank.
"In the past two days, the financial markets have been the
main driver of higher crude oil prices, but in the back of every
investor's mind there is the unrest in the Middle East and that
is supporting the market."
Asian shares rose as markets digested Friday news that
China's official purchasing managers' index rose in March from a
six-month low, but was still a touch under the Reuters median
forecast. []
The U.S. economy probably recorded a second straight month
of solid job growth in March, when non-farm payrolls rose by
190,000, according to a Reuters poll, proof the labor market has
turned the corner after lagging the broader economic recovery.
[]
While improving economic performance is lifting industrial
demand for energy in the U.S., high prices at the pump are
damaging consumer confidence and capping gasoline demand.
MIDEAST
In Libya, rebels on Thursday cheered the defection of the
country's foreign minister as a sign that Muammar Gaddafi's rule
was crumbling, but U.S. officials warned he was far from beaten
and made clear they feared entanglement in another painful war.
[]
Libya's top oil official said on Thursday he remained in
Tripoli and the country was continuing to produce some oil,
although output was much reduced. []
Still, J.P. Morgan analysts were doubtful that any Libyan
crude supplies would reach world oil markets on a sustained
basis, even after Qatar earlier this week offered to market
crude in rebel control, because of the risks associated with
loading cargoes from a country in war.
"The opposition forces, although recognised by France and
Qatar, have no recognition from the UN itself," J.P. Morgan
analysts headed by Lawrence Eagles said.
"Moreover, production would require the return of
international workers who left the country when the conflict
broke out. Their return is difficult to envisage without
stability on the ground."
In the Mideast Gulf, Bahrain has stepped up arrests of cyber
activists and Shi'ites, with more than 300 detained and dozens
missing since it launched a crackdown on pro-democracy protests,
the opposition said on Thursday. []
Bashar al-Assad, the President of minor oil exporter Syria,
has set up a committee to look into replacing a decades-old
emergency law with anti-terrorism legislation after a wave of
demonstrations for greater freedoms. []
(Editing by Himani Sarkar)
