RTRS:Brent remains above $120 on Iran worries, Greece optimism
* Top European buyers of Iranian oil make supply cuts
* Optimism on Greece supports
* Upbeat U.S. data shows jobless claims down (Updates prices, adds details)
By Jessica Jaganathan
SINGAPORE, Feb 17 (Reuters) - Brent crude traded little changed above $120 on Friday, supported by supply concerns as European buyers sought alternatives to sanctions-hit Iranian oil and the prospect of a revival in demand as Greece edged closer to a bailout deal.
Supply disruption fears and optimism over Greece has made oil one of the better commodity performers this week, with U.S. crude eyeing its biggest weekly gain since late December and Brent headed for its fourth consecutive weekly rise.
Front-month April Brent crude futures were up 25 cents to $120.36 at 0741 GMT, up 2.1 percent so far this week.
U.S. crude has gained around 4 percent this week -- its biggest weekly rise since the week ended Dec. 23. At 0742 GMT, it had climbed 35 cents to a more than one-month high of $102.66, with the premium of Brent over U.S. crude widening to above $17. CL-LCO1=R
"Brent is reacting to a combination of things, including continued optimism over Greece, a weaker dollar and the market focusing on reduced exports from Iran to Europe," said Jonathan Barratt, chief executive of Barratt's Bulletin.
Iran's top oil customers in Europe are making substantial cuts in what they import months ahead of European Union sanctions, reducing flows to the continent in March by more than a third, industry sources said.
Growing optimism that Greece has finally done enough to secure a second bailout after it set out extra budget savings also boosted sentiment on crude.
Euro zone finance ministers are due to meet on Monday, and expectations that they will sign off a bailout deal for Greece increased after a proposal was dropped to withhold part of the agreement until after Greek elections expected in April.
"The Europe financial meeting on Monday is going to be the key driver in oil prices," said Ken Hasegawa, a commodity derivatives manager with Newedge Brokerage in Tokyo.
"I'm technically expecting a healthy correction in Brent, with some proft-taking selling after the meeting."
Prices were also supported by more evidence of sustained recovery momentum in the U.S. economy. U.S. data on Thursday showed jobless claims falling to a near four-year low, solid growth in factory activity in the Mid-Atlantic area and a faster-than-expected rise in housing starts.
However, Iran's tensions with the West, and violence in other countries in the Middle East and Africa, will continue to keep Brent above $110, Hasegawa of Newedge Brokerage said. (Editing by Miral Fahmy)
