* Venezuela says Libyan government accepts peace proposal
* Arab League says Libyan peace plan under consideration
* Libyan rebel leader says no interest in negotiating
* Coming up: US Feb payrolls data, 8:30 a.m. EST Friday
NEW YORK, March 3 (Reuters) - U.S. crude oil futures prices edged lower on Thursday after a Venezuelan proposal for resolving Libya's crisis prompted traders to book profits despite skepticism about whether such a plan would work.
Venezuelan President Hugo Chavez's plan to negotiate a solution to the rebellion in Libya met with little immediate support. The chairman of the rebel National Libyan Council entirely rejected any talks with Libyan leader Muammar Gaddafi while Arab League President Amr Moussa said it was merely "under consideration." [ID:nLDE7222AG]
Brent crude futures also fell amid the flurry of headlines on the situation in Libya.
FUNDAMENTALS
* On the New York Mercantile Exchange, April crude (CLJ1: Quote, Profile, Research) fell 32 cents, or 0.31 percent, to settle at $101.91 a barrel, trading from $100.15 to $102.94.
* Muammar Gaddafi struck at rebel control of a key Libyan coastal road but received a warning he would be held to account at The Hague for suspected crimes by his security forces. [ID:nLDE72200E]
* Saif al Islam, Gaddafi's son, said there was no need for any foreign role in ending Libya's crisis when asked about a mediation offer by Venezuela. [ID:nLDE7222F7]
* France and Britain told Libyan leader Muammar Gaddafi they would press for the imposition of a no-fly zone if attacks against his country's citizens continued. [ID:nLDE7221SN]
* Around 100 Saudi Shi'ites staged a protest in Saudi Arabia's oil-producing Eastern Province, demanding the release of prisoners they say are being held without trial, witnesses said. [ID:nLDE72225M]
* The United States can tap strategic oil reserves if need be to keep soaring oil prices from derailing a global recovery, Treasury Secretary Timothy Geithner said. [ID:nN03270497]
* The number of U.S. initial jobless claims hit the lowest level in more than 2-1/2 years last week and service sector hiring picked up in February. Another report confirmed business productivity picked up in the fourth quarter. [ID:nN02222564]
* Top U.S. retailers posted stronger-than-expected sales gains for February. [ID:nN03203429]
* China's leading refineries will cut crude oil throughput in March to the lowest daily volume in a year, as heavy maintenance, bulging fuel inventories and soaring crude costs dampen operation levels. [ID:nL3E7E30JT]
MARKETS NEWS
* The euro rallied to a fresh four-month high against the U.S. dollar after European Central Bank President Jean-Claude Trichet cemented expectations of a near-term interest rate rise. [USD/]
* Investors betting on a big gain in U.S. nonfarm payrolls pushed Wall Street to its best one-day rally in three months. As oil paused from its recent climb, the stock market's focus shifted to stronger-than-expected economic data a day before the February U.S. employment report. [.N]
* Copper ended up after hitting its highest level in two weeks, supported by better-than-expected labor market data in the United States and a retreat in the price of oil. [MET/L]
UPCOMING DATA/EVENTS
* U.S. nonfarm payrolls data released at 8:30 a.m. EST (1330 GMT) on Friday are expected to have risen in February after being held down by extreme winter weather in January. Employment is expected to have increased by 185,000, which would be the largest gain in almost a year.
* Commodities Futures Trading Commission weekly positions data is set for release at 3:30 p.m. EST (2130 GMT) on Friday.
SETTLE NET PCT LOW HIGH CURRENT DAY AGO
CHNG CHNG VOL VOL CLc1 101.91 -0.32 -0.3% 100.15 102.94 361,112 446,378 CLc2 103.09 -0.39 -0.4% 101.36 104.25 117,902 164,094 LCOc1 114.79 -1.56 -1.3% 113.09 116.90 207,250 208,292 RBc1 3.0262 -0.0033 -0.1% 2.9800 3.0300 30,456 47,497 RBc2 3.0329 -0.0053 -0.2% 2.9894 3.0370 17,708 24,132 HOc1 3.0493 -0.0084 -0.3% 3.0114 3.0673 35,233 53,656 HOc2 3.0588 -0.0104 -0.3% 3.0278 3.0744 13,336 20,505 TOTAL MARKET VOLUME OPEN INTEREST
CURRENT Mar 02 30D AVG Mar 02 NET CHNG CRUDE 709,942 942,468 927,890 1,574,388 -4,869 RBOB 71,301 114,442 119,024 280,226 2,162 HO 85,749 134,341 135,351 300,763 -1,552 (Reporting by Robert Gibbons and Gene Ramos; Editing by David Gregorio)
