Oil hovers at $100 ahead of key US jobs report

[December 02, 2011]  SINGAPORE (AP) -- Oil prices hovered above $100 a barrel Friday in Asia as traders awaited a U.S. jobs report for evidence about the strength of the U.S. economy and demand for crude.

Benchmark crude for January delivery was up 60 cents to $100.80 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 16 cents to settle at $100.20 on Thursday.

In London, Brent crude was up 50 cents at $109.49 on the ICE futures exchange.

Crude has jumped from $75 during the last two months amid signs the U.S. economy will likely avoid a recession. Investors will be closely watching the Labor Department's November unemployment report later Friday for evidence economic growth is strengthening, which could justify higher crude prices.

Analysts expect the economy added about 120,000 jobs last month.

Traders are also concerned about rising tensions over possible sanction against Iran, OPEC's second-largest producer, because of its nuclear program. Some analysts, such as J.P. Morgan, say that Iran may pre-emptively cut oil exports if sanctions are imminent, a move that would send oil prices soaring.

"This would undoubtedly shock the oil market, and the initial market shock could be in the $20 to $30 per barrel range," J.P. Morgan said in a report. "The risks of such a disruption have materially increased."

In other Nymex trading, natural gas fell 0.3 cent at $3.65 per 1,000 cubic feet. Heating oil added 4.8 cents to $3.02 a gallon and gasoline futures gained 7.4 cents to $2.63 a gallon.

[Associated Press; By ALEX KENNEDY]

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