By Steve Gelsi and Nick Godt, MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures hovered near $106 a barrel Thursday after U.S. weekly jobless claims fell as expected and as conflicts in Libya and elsewhere in the oil-producing world simmered in the face of fresh European sovereign-debt woes.
Crude for May delivery (CLK11 105.56, -0.19, -0.18%) rose 31 cents to $106.07 a barrel. U.S. Treasury prices and the dollar dipped, while U.S. equities opened higher.
Investors monitored continued fighting in Libya and turmoil in the Middle East, as well as the prospects of a bailout of Portugal.
Oil futures moved further into territory unseen since 2008, after trading at $85 a barrel just one month ago.
On Wednesday, the contract closed at $105.75 a barrel on the New York Mercantile Exchange, its highest close since September 2008 and its fifth straight session of gains.
Meanwhile, the Energy Information Administration reported an increase in crude-oil inventories of 2.1 million barrels for the week ended March 18, topping some analysts’ estimates.
Oil prices are likely to remain supported as the U.S., U.K. and France continue airstrikes against the forces of Libyan leader Col. Moammar Gadhafi.
“Supply disruption still trumps participants’ concerns,” said Mike Fitzpatrick, partner at the Kilduff Group, in a note.
Popular revolts have spread to Yemen and Syria, where at least 10 people were killed after Syrian police opened fire on demonstrators, according to the BBC.
In Israel, Prime Minister Benjamin Netanyahu said he would act “aggressively and responsibly” after a bomb exploded in central Jerusalem, the BBC said.
During U.S. trading hours Thursday, the EIA is slated to report natural-gas inventories. Analysts polled by Platts expect a decline of between 5 billion and 9 billion cubic feet for the week ended March 18.
