Oil rises over $114 on U.S. jobs data

By Margaret Orgill

LONDON (Reuters) - Oil rebounded over $114 a barrel on Friday after three straight days of falls, after better-than-expected U.S. jobs data eased worries about a deep recession in the world's top crude consumer.

News that the Cano Limon Covenas oil pipeline in Colombia had been shut down following a rebel bomb attack also boosted the crude market.

U.S. light crude for June delivery rose as high as $114.24 but the slipped to $113.90 at 3 p.m., up $1.38 on the day's opening level and well above the session lows of $111.78. London Brent crude was $1.68 higher at $112.18.

The U.S. government said on Friday that the economy lost just 20,000 jobs last month, compared with forecasts of losses of 80,000.

"The numbers are still suggesting a mild recession but maybe they ease fears of a deep or prolonged downturn, and to that extent they would be supportive to the oil market," said Mike Wittner of Societe Generale.

Earlier, news of bombing raids by Turkish warplanes on Kurdish rebels in northern Iraq overnight on Thursday, had supported oil prices although there were no reports any impact on crude output from the region.

Oil had steadily fallen since hitting a record high of $119.93 on Monday, tracking a recovery in the dollar and as demand in No.1 consumer, the United States, wanes on the back of surging fuel costs and wider economic woes.

The dollar hit a two-month high against the yen on Friday after U.S economic data reinforced expectations the Federal Reserve will keep interest rates on hold for a while.