-- Crude futures were choppy with Brent unable to sustain gains above $120 a barrel. -- Hopes for a second Greek bailout and positive U.S. economic data helped lift risk appetite. -- Supply-side risks also underpinned prices, helping Brent remain near an 8-month high. By Sarah Kent Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Crude futures were choppy Friday, as Brent ran into technical resistance despite increased risk appetite thanks to economic optimism and ongoing supply-side risks. Prices remained strong, but Brent was unable to sustain gains above the $120 a barrel mark, which is seen as a critical level for technical traders. At 1049 GMT, the front-month April Brent contract on London's ICE futures exchange was 27 cents, or 0.2%, lower at $119.84 a barrel, though it still hovered near an 8-month high of $120.70 a barrel hit earlier in the day. The front-month April contract on the New York Mercantile Exchange was trading up 37 cents, or 0.4%, at $103.01 per barrel, after reaching its highest in a month earlier in the day. Gains in the equity market and a stronger euro helped bolster oil prices as investors welcomed signs that Greece is edging closer to securing a second bailout. Positive economic data out of the U.S. Thursday also gave the market a boost, after U.S. weekly jobless claims fell to a 4-year low, while manufacturing and housing data also painted a positive picture of the American economy. Meanwhile, supply disruptions continued to underpin prices. Iranian tensions with the West remain a key focus for market participants, with a strong risk premium holding prices firm. This week focus has turned to South Sudan, Syria and Yemen where internal problems have caused severe disruptions to oil exports. The combination of these elements is likely to keep prices elevated, analysts said. "For as long as there are serious concerns about supply shortfalls and while optimism continues on the financial markets, the oil price is likely to continue to rise, especially since even investors with a short-term view will no doubt want to jump on the bandwagon now that the $120 [a barrel] mark has been exceeded," said Commerzbank in a note. However, such high prices pose a serious risk to the fragile global economic recovery, with the price of oil and its products already approaching the record highs of 2008 for European consumers. "Right now one would argue that at this level above $120 a barrel we would start to see demand destruction, but that will take some time," said Ole Hansen, manager of the futures and fixed income trading desk at Saxo Bank. "There is both a fundamental demand and supply story building here, but so far the focus is on the supply side only," he added. At 1049 GMT, the ICE's gasoil contract for March delivery was up $2.00, or 0.2%, at $1006.00 per metric ton, while Nymex gasoline for March delivery was 92 points, or 0.3%, lower at $3.0379 per gallon. -By Sarah Kent, Dow Jones Newswires; 4420-7842-9376; sarah.kent@dowjones.com

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