World oil prices hit 2.5-year highs

LONDON, April 8 (AFP): World oil prices jumped Friday to their highest levels in more than two years as the market was driven by simmering political tensions in the Arab world and concerns over elections in Nigeria. Brent North Sea crude for delivery in May hit $124.84, the highest price since early August 2008. The contract later stood at 124.65, up $1.98 from Thursday's closing level. New York's main contract, light sweet crude for delivery in May, soared to $111.90 -- a level last seen in September of the same year, before pulling back to 111.37, up $1.07 from Thursday. Prices rose sharply this week on the back of violent unrest in Libya, popular unrest in the wider Middle East, and as the dollar has weakened against the euro. "Another day and another upside move on oil," said PVM Oil Associates analyst David Hufton. "All eyes are focussed on Libya and the news for those looking for a quick resumption of supplies and lower oil prices is not good," Hufton said. "Libyan leader Moammer Gaddafi's troops have destroyed the infrastructure of the only oil fields under the control of his opponents, cutting off their only source of finance." As the uncertainty continues in Libya, Gulf states have piled pressure on Yemen's embattled President Ali Abdullah Saleh, saying they expect him to quit following more than two months of bloody protests. "Current levels for crude are primarily supported by the Middle East tensions and also the Nigeria elections," said Chen Xin Yi, a commodities analyst with Barclays Capital. "The postponement of last's week parliamentary polls (in Nigeria) due to logistical problems does not bode well for presidential elections," Chen added. Nigeria, a major oil exporter, on Thursday announced a third delay in legislative polls, due at the weekend, in some parts of the country after failure to overcome logistical problems. Added to the mix, fresh data showed Thursday that US initial jobless claims tumbled three percent last week, reinforcing signs the troubled labor market is on the mend in the United States, the world's biggest oil consumer. Traders were also watching carefully Friday the latest news on the eurozone debt crisis after Portugal became the third eurozone member after Greece and Ireland to seek a debt bailout. EU finance ministers meeting in Hungary took up the issue, saying Portugal could get 80 billion euros ($115 billion) in loans in return for tough conditions on its budget and economy.