Crude rises to $102 after selloff on rising inventories

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Prices were supported by ongoing concerns over supply disruptions from the North Sea and the Middle East and fresh signs of a recovery in the U.S. economy.

The market will be eyeing a key jobs report out of the United States on Friday for further evidence of the recovery at the world's top oil consumer.

FUNDAMENTALS

NYMEX crude for May delivery slipped 2 cents to $103.99 a barrel by 9.08 a.m. EDT, after settling down $1.22 at $104.01 in the previous session.

London Brent crude for May delivery fell 5 cents to $124.81 a barrel, after settling down 57 cents at $124.86.

A surge in imports following fog-related delays in key Texas oil-shipping channels in March pushed crude inventories up more than 16 million barrels in the two weeks to March 30, the biggest two-week increase since March 2001, data from the Energy Information Administration showed. <EIA/S>

Japanese refiners will cut Iranian crude imports yet again in April as they shy away from renewing annual contracts, showing continued commitment to U.S.-led sanctions over Tehran's nuclear program.

U.S. businesses added 209,000 jobs in March, according to the ADP National Employment Report. The report by the payrolls processor was slightly above economists' expectations for a gain of 200,000 jobs.

The U.S. March nonfarm payrolls report from the U.S. Labor Department due on Friday is expected to show a gain of 203,000 jobs, including a rise in private payrolls of 218,000.

Exxon Mobil Corp's (XOM.N) 344,500 barrels per day (bpd) Beaumont, Texas, refinery began a planned overhaul on Sunday on Crude Distillation Unit B, a coking unit, and other associated units, a company spokeswoman said.

MARKETS NEWS

Asian shares fell on Thursday after a weak Spanish bond sale heightened concerns about funding difficulties by lower-rated euro zone countries, further undermining sentiment hurt by fading expectations for more stimulus from the U.S. Federal Reserve. <MKTS/GLOB>

The euro floundered at three-week lows versus the yen and dollar on Thursday, while commodity currencies also nursed heavy losses after a poor Spanish bond auction reignited worries about the euro zone debt crisis. <USD/>

DATA/EVENTS

The following data is expected on Wednesday:(Time in EDT)

- 3.58 a.m. Euro zone March Markit Services PMI

- 10.30 a.m. U.S. weekly EIA petroleum status report

(Reporting by Francis Kan; Editing by Sugita Katyal)

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