NYMEX-Crude near 2-1/2 year peak on Libya fighting - Reuters

* Fierce fighting between loyalists, rebels in Libya

* Supply fears push U.S. crude to near 2-1/2 year high

* U.S. crude discount to Brent narrows to $11.55 at close

* Coming up: API petroleum data, 4:40 p.m. EST Tuesday

NEW YORK, March 4 (Reuters) - U.S. crude oil futures rose
to a near 2-1/2 year high on Friday as fierce fighting between
loyalists to Libya's Muammar Gaddaffi and rebels seeking to
oust him from power raised more fears of supply disruptions.

Upbeat U.S. jobs data helped lift crude futures at a faster
pace than their Brent counterpart traded in London, narrowing
the discount of U.S. crude against Brent to $11.55 a barrel
from $12.88 at the close on Thursday.

Crude oil gained for the third day in four. Prices fell on
Thursday after Venezuela offered to mediate a resolution to the
conflict that has seen Libyan output fall by about 1.0 million
barrels a day.

FUNDAMENTALS

* On the New York Mercantile Exchange, crude for April
delivery CLJ1 settled at $104.42 a barrel, gaining $2.51, or
2.46 percent, the highest since the Sept. 26, 2008 close at
$106.89. The contract traded from $101.54 to $104.60.

* In post-settlement trading, the contract shot up to
$105.17, the highest intraday since Sept. 29, 2008's $106.91.

* For the week, NYMEX front-month crude gained $6.54, or
6.7 percent, after rising $11.68, or 13.5 percent, in the week
to Feb. 25. Prices rose for the third week in a row.

* In London, ICE April Brent LCOJ1 settled more than 1
percent higher, near $116. For the week, front-month Brent
crude rose $3.83, or 3.42 percent, after surging $9.62, or 9.38
percent, in the week to Feb. 25. Brent crude prices gained for
the sixth consecutive week.

* NYMEX April RBOB RBJ1 ended higher and for the week
jumped 30.69 cents, or 11.2 percent, the biggest weekly
percentage gain since the week to Oct. 16, 2009, when RBOB rose
11.95 percent.

* NYMEX April heating oil HOJ1 closed up and for the week
advanced 15.84 cents, or 5.4 percent, after gaining 21.8 cents,
or 8.04 percent, in week to Feb. 25.

* Speculators increased net long positions in U.S. crude
oil futures by 30 percent to an all-time high 268,622 in the
week to March 1, data from the Commodity Futures Trading
Commission showed. [ID:nN04234225]

* U.S. payrolls rose 192,000 in February, slightly above
the 185,000 gain forecast in a Reuters poll, and the jobless
rate unexpectedly dipped to 8.9 percent, nearly a two-year low,
from 9 percent in January. [ID:nOAT004757]

* Loyalists to Libya's Muammar Gaddafi fought their way
into Zawiyah, about 50 km (30 miles) west of Tripoli, killing a
rebel commander and pinning fighters into pockets of
resistance. [ID:nLDE7231X0]

* Rebels against Gaddafi said they had captured the eastern
oil town of Ras Lanuf, extending their hold on eastern Libya.
[ID:nLDE72300M]

* For a FACTBOX on the latest developments in the Middle
East and North Africa, click on [ID:nLDE7231SG]