Oil above $98 on U.S. job news (Reuters) (14-01-2011)

SINGAPORE – Oil stayed above $98 on Friday with Brent crude for February up 20 cents to $98.26 a barrel at 2:39 a.m. ET, while the March contract, which will become the front month on Monday, was trading at $97.45.

On a weekly basis, Brent has gained more than 4 percent, reaching a 27-month high of $98.85 on Wednesday, while U.S. marker West Texas Intermediate (WTI) has risen by less than 3 percent. It fell 37 cents to $91.03 on Friday, more than $7 below Brent, the widest discount since February 2009.

Alaska's main oil pipeline will shut from Friday evening to install a bypass aimed at restoring oil shipments to full volumes after the line was shut following a leak last week.

Crude flow was 320,000 barrels per day on Thursday, about half of normal levels, after operator Alyeska partially resumed shipments this week. The rate fell from a previous 400,000 bpd on Wednesday, as the pipeline drew less oil from storage tanks along its trajectory.

Brent crude last traded above $100 a barrel on October 1, 2008, the only year in which any front-month oil futures benchmark has surpassed that level. It first touched $100 on February 26, 2008, almost two months after benchmark U.S. crude West Texas Intermediate futures first touched that level on January 2, 2008.

Source: Reuters