* Brent touches $117.90, highest in almost four weeks
* U.S. crude up to $107.65, highest since September 2008
* Coming Up: U.S. non-farm payrolls for March; 1230 GMT
(Updates prices, analyst comment, Gabon)
By Nia Williams
LONDON, April 1 (Reuters) - Oil prices rose on Friday, with
Brent crude nearing $118, as investors anticipated U.S. payrolls
data later in the session will confirm the improving economic
outlook of the world's largest oil importer.
Fighting in Libya, where Muammar Gaddafi's forces appear to
have regained the upper hand, supported crude prices as the
prospect of a drawn-out conflict reduced expectations of lost
Libyan oil returning to the market in the near future.
Further supply disruption came from Gabon, which produces
between 220,000 and 240,000 barrels a day, where striking
workers are shutting half the central African nation's crude oil
output on Friday and plan to halt the remaining output within 48
hours. []
Brent futures for May delivery <LCOc1> rose 29 cents to
$117.65 by 1111 GMT, after earlier hitting the highest level
since March 7. U.S. crude futures <Clc1> climbed 49 cents to
$107.21, down from a peak of $107.65 last hit in September 2008.
"I think we are going to be range trading ahead of the
payroll data but if it proves strong we could see oil advance
further," said Christin Tuxen, an analyst at Danske Bank, adding
she expected Brent to trade between $110 and $125 a barrel in
the second quarter of 2011.
"A lot in the oil market depends on what happens in the
Middle East but our analysts see a fairly broad based global
(economic) recovery and we should see commodities edge higher in
general," she said.
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.
A Reuters poll suggested the U.S. non-farm payrolls data for
March, due at 1230 GMT, would show a second straight month of
solid job growth, adding 190,000 jobs. A rise would imply the
labour market has turned a 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.
LIBYA, MIDDLE EAST TURMOIL
Libyan rebels cheered the defection of the foreign minister
on Thursday as a sign Gaddafi's rule was crumbling, but U.S.
officials warned he was far from beaten and made clear they
feared entanglement in another war. []
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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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Rebel officials set out conditions for any ceasefire on
Friday, including that the Libyan leader's forces quit cities in
the west and give people freedom to speak out. []
Analysts warned it was doubtful Libyan crude would reach
world markets on a sustained basis because of the risk of
loading cargoes and said recent advances by government troops
were bullish for oil prices.
Bahrain has stepped up arrests of cyber activists and
Shi'ites and investors will also keep a close eye on events in
Syria and Yemen. The conclusion of Friday prayers is a favoured
time for demonstrations in the region. []
"Friday prayers in the Middle Eastern world are a special
time when protests gather momentum," said Eugen Weinberg,
commodities analyst at Commerzbank. "That should prevent a steep
decline in oil prices even if payrolls prove disappointing."
Reuters technical analysis suggests Brent will continue to
rise towards $119.79 as a short-term uptrend pointing to $123.46
per barrel has been established, although there is a minor
resistance zone between $118.37 and $118.50. []
(Additional reporting by Alejandro Barbajosa; editing by
Keiron Henderson)
