Oil prices rise past 2 and a half year highs

04-Apr-11

Crude prices rose to US$108, extending gains to rise to more than 2-1/2 years and Brent also edged up, supported by positive jobs data from USA and supply concerns set off by the persistent turmoil in Middle East and Africa. Crude is at US$108.34, after touching $US108.7 earlier in the session - highest since September 2008. ICE Brent settled at US$118.92 a barrel. Oil prices were boosted by strong US payrolls data. US employment grew firmly for a second straight month in March and the jobless rate hit a two-year low of 8.8%, confirming the labor market was strengthening and fueling optimism about oil demand. The government of Libya has sent an envoy to Greece to discuss an end to fighting, with no indication of any retreat in a war currently at a stalemate between rebels and forces loyal to Muammar Gaddafi. In Yemen, two protesters died and hundreds were hurt when police used live rounds, tear gas and batons to try to break up protests against President Ali Abdullah Saleh, who called for an end to weeks of unrest, signalling he has no intention of resigning soon. Unrest also reigned in other parts of the Middle East, with the Gulf Arab states voicing deep concern over what they called Iranian interference in their affairs after Iran objected to the despatch of Saudi troops to Bahrain and a spying row raised tensions. Bahrain has seen the worst unrest since the 1990s after mostly Shi'ite protesters took to the streets in February, inspired by uprisings that toppled leaders in Egypt and Tunisia, to demand a bigger say in the Sunni-ruled country.