SINGAPORE: US crude futures rose toward $109 on Friday, on track for a third week of gains, as worries about Iranian supply supported prices while upbeat US economic data lifted demand outlook at the world's largest oil consumer.
FUNDAMENTALS
On the New York Mercantile Exchange, crude for April delivery was up 78 cents to $108.61 by 0107 GMT. Prices are up 5 percent this week.
Brent crude valued in euros set an all-time high on Thursday above 93 euros a barrel, beating 2008's pre-financial crisis high and adding fuel costs to euro zone's debt troubles.
Iran said on Thursday it has maintained oil production levels despite sanctions, but oil experts said they suspected Tehran was storing crude at sea while looking for new customers to evade Western measures aimed at slowing its nuclear program.
Japan may cut Iranian crude oil imports by a more-than-expected 20 percent as it seeks a waiver from US sanctions, a newspaper reported on Thursday, a move which would spare its banks from a major blow but also boost its rising fuel import bill.
US demand for refined oil products plunged to the lowest level in nearly 15 years as crude stocks grew last week, US Energy Information Administration data showed.
Exxon Mobil Corp added 1.8 billion oil equivalent barrels (BOE) to its energy reserves in 2011, or about 107 percent of its production during the year, the company said.
MARKETS NEWS
Asian shares rose on Friday as solid US data improved sentiment, but the upside may be capped by concerns that rising oil prices could deal a further blow to the fragile euro zone economy and moves to take profits after recent gains.
The euro hovered at 2-1/2-month highs on Friday, holding on to chunky gains made the day before after data on improving German business sentiment prompted traders to cover short positions.
The euro zone economy is heading into its second recession in just three years and the wider European Union will stagnate, the EU's executive said on Thursday, warning that the currency area has yet to break its vicious cycle of debt.
* The number of Americans filing new claims for jobless benefits last week held at the lowest level since the early days of the 2007-2009 recession, signaling that the battered labor market is healing.
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