Oil climbed for a third day in New York after the U.S. boosted payrolls more than forecast, bolstering optimism that the world’s largest economy and fuel demand will grow.

Futures rose as much as 1.5 percent after Labor Department figures showed that payrolls increased by 227,000 in February. A gain of 210,000 was projected, according to the estimates of economists. Greece said it reached its target in the biggest sovereign restructuring in history, reducing the likelihood of a default.

Prices fell as much as 0.4 percent earlier after the Organization of Petroleum Exporting Countries cut its global oil demand outlook for this year, warning that growth risks may erode consumption as the group pumps the most in three years.

OPEC cut its 2012 oil demand forecast by 130,000 barrels a day to 88.63 million, according to the group’s Vienna-based secretariat. That means growth will slow to 860,000 barrels compared with 940,000 barrels previously.

Oil for April delivery climbed to $108.20 a barrel on the New York Mercantile Exchange. Prices have advanced 1.1 percent this week and 9.1 percent this year.

Brent oil for April settlement gained 42 cents, or 0.3 percent, to $125.86 a barrel on the London-based ICE Futures Europe exchange.