Oil prices jumped on Friday, as supportive US jobs data reinforced economic growth expectations and Libya’s conflict and West Asia unrest kept supply threats in focus, pushing both Brent and US crude to their highest settlements since 2008.
US nonfarm payrolls registered solid growth for a second month in March and the jobless rate hit a two-year low of 8.8 per cent, helping fuel optimism about oil demand. Geopolitical supply risks also had oil traders wary of being too short at the weekend, as Libya’s undecided conflict and West Asia unrest persist and elections near for OPEC-member Nigeria, brokers and analysts said.
Oil prices also benefited from momentum after ending the first quarter posting double-digit quarterly gains.
Brent crude for May rose $1.34 to settle at $118.70 a barrel, the highest close since August 2008 and up $3.11 for the week. It hit a May contract peak of $119.14 in post-settlement trading. Brent’s front-month 2-and-a-half-year high of $119.79 was struck on February 24. Brent has bounced back after falling below $108 in the aftermath of Japan’s March 11 earthquake and tsunami.
US crude rose $1.22 to settle at $107.94, pushing to $108.47 in post-settlement trading. Both the settlement and the intraday peak were the highest since September 2008.