* Weaker dollar, Asian economic data supports oil prices
* European stock markets gain, economic sentiment rises
* Coming up: key U.S. monthly jobs report on Friday
(Updates prices)
By Joe Brock
LONDON, March 29 (Reuters) - Oil prices rose towards $81 a
barrel on Monday, recouping some of the previous session's
losses, supported by a weaker dollar and positive data,
including a rise in Euro zone sentiment in March.
U.S crude for May <CLc1> delivery rose 69 cents to $80.69 a
barrel by 1101 GMT. The contract settled down 53 cents at $80.00
per barrel on Friday, bringing weekly losses to 0.84 percent.
London Brent crude <LCOc1> gained 63 cents to $79.92.
"Oil is moving on the dollar," said Eugen Weinberg, oil
analyst at Commerzbank in Frankfurt.
"Equity markets are also higher but the dollar is much
weaker against the euro and that is dragging all commodities
higher," Weinberg added.
European stock markets followed Hong Kong's index higher on
Monday, raising optimism over the strength of the global
economic recovery and an increase in demand for fuel.
[]
The dollar index <.DXY> softened against the euro on Monday,
increasing risk appetite and boosting commodity prices.
Data showing Euro zone economic sentiment rose more than
expected in March and robust Asian economic indicators also
helped to boost oil market sentiment. []
ECONOMIC SENTIMENT
China's annual economic growth will reach 12 percent this
quarter, a government researcher said, as economists raised
growth forecasts for the world's second-largest energy user
after strong industrial output growth last month.
[]
Japanese retail sales jumped the most in 13 years in the
year to February due to the lingering effects of government
stimulus, while South Korea's current account swung back to a
surplus in February on brisk exports. []
[]
On Friday, all eyes will turn to key monthly U.S. non-farm
payrolls data for the latest indication of the strength of
economic recovery in the world's largest energy consumer.
The consensus is for a gain of 190,000 jobs in March, the
second month of jobs growth since the recession started in
December 2007, and the largest increase since March of that
year. []
Having traded intra-day above $80 for the past 27 trading
sessions, some traders said oil prices appear to be ready for a
breakout from current levels.
However, with crude oil demand fundamentals continuing to
clash with the positive macroeconomic data, analysts said prices
could struggle to break out of the $84 mark -- the highest price
struck this year.
Oil prices could stay in the $70-$80 range over the next
decade, according to a report by OPEC released ahead of a major
oil conference this week which reiterated demand forecasts made
last year. []
Oil price volatility has dropped signficantly and prices
have been holding to a tighter range. []
(Additional reporting by Fayen Wong in Perth; Editing by
William Hardy)
