Oil remains up

Crude oil futures rose for a second day on Thursday as news of progress on Greece's bond swap deal fed hopes that the country would win enough creditor backing to avoid default. Tensions between Iran and the West over Tehran's nuclear ambitions provided further support.
US data showed unemployment benefit claims rose last week, but not enough to change the outlook that the labour market was growing stronger. That view helped crude hold its gains. The jobless claims data bolstered expectations that Friday's US government report on how the jobs market fared in February will show a solid rise in payrolls.
Spread trading on Brent and the US crude benchmark West Texas Intermediate also lifted the day's trade. In London, ICE Brent crude for April delivery settled at $125.44 a barrel, gaining $1.32. It hit a session peak of $126.34, the highest since March 1, when front-month Brent hit $128.40, the priciest since July 2008.
US April crude settled at $106.58 a barrel, rising 42 cents. It hit a session high of $107.20 in morning trade. Front-month US crude reached $110.55 on March 1, the highest since May last year. Brent's premium against US crude widened to $18.86 at the close from $17.96 on Wednesday, when US government data showed crude stocks at the Cushing, Oklahoma delivery hub shot up last week to the highest level in eight months. That stock build helped boost Brent's premium to US crude.
"The WTI/Brent spread is today's focus and $20 is your first upside objective," said Tony Rosado, options broker at GA Global Markets in New York. Brent trading volume was up 7 percent from its 30-day average while dealings in US crude were down 10 percent from the 30-day average, according to Reuters data.
Greece moved closer to concluding a bond swap with private creditors it needs to prevent a chaotic debt default and buy time to repair its weak economy. Greece has crossed the minimum 50 percent required for a deal and was almost certain to top the two-thirds level needed to enforce losses on any holdouts. The deadline for accepting Greece's swap deal offer was 3 p.m. EST (2000 GMT).
The euro rose to a global session high against the dollar on the positive news about the Greek debt swap deal, stirring "risk-on" trades on oil futures, other commodities as well as equities. The dollar was down 0.63 percent against a basket of currencies. "An agreement over the Greek bond swap will be a key driver, indirectly impacting oil prices through the foreign exchange markets and how the dollar will move against the euro," BNP Paribas head commodities strategist Harry Tchilinguirian said. "For now, sentiment is positive and the dollar is pulling back a little, supporting higher oil prices this morning."
Investors remained focused on the tensions over Iran's nuclear program, which have driven up oil prices recently. Iran's supreme leader Ayatollah Ali Khamenei told news agency IRNA he welcomed US President Barack Obama's words on a diplomatic "window of opportunity", but said that continued talk of sanctions showed "the illusion continues".
France on Wednesday voiced scepticism that a revival of talks between six world powers and Iran would succeed, saying Tehran did not seem sincerely willing to negotiate about the future of its nuclear program. Led by the United States, the six powers demanded on Thursday that Iran fulfil a promise to let international inspectors visit a military installation where the UN nuclear watchdog believes explosives tests aimed at developing atomic bombs may have taken place.
Supply tightness could become more apparent as Royal Dutch Shell starts looking for alternative crude when its deliveries of Iranian oil under outstanding contracts come to an end to comply with sanctions within weeks. Economic data also helped support oil prices, such as news that Japan's economy shrank less than initially estimated in the fourth quarter, as companies ramped up spending.