Oil jumps over 3% to $116 on US jobs data

Oil jumped more than 3% to over $116 a barrel on Friday after a report showing the US economy lost fewer jobs than feared in April eased worries about the country's economic health.

US crude oil futures for June delivery rose $3.80 to settle at $116.32 before touching a high of $116.49 a barrel in late trade. London Brent crude gained $4.06 to settle at $114.56. The gains followed three days of losses amid concerns that economic weakness in the US would continue to blunt world oil demand growth.

World markets cheered a US government report that the economy lost only 20 000 jobs in April, a quarter the number economists had expected.

Surprisingly strong US factory order data improved sentiment further.

Earlier, oil prices drew support from renewed clashes between Turkey and Kurdish rebels in northern Iraq.

Meanwhile, Turkish air force bombers attacked Kurdish rebel targets overnight, the latest in a series of strikes since Turkish ground troops crossed the Iraqi border in force in February. –Reuters