UPDATE 8-Oil rises slightly, market eyes dollar, China

                                
 * Weekly US government oil data on Thursday due to holiday
                                
 * Chinese fuel demand strong in October
                                
 * Dollar rebounds from earlier lows
 (Updates prices at settlement)
                                
 NEW YORK, Nov 11 (Reuters) - Oil prices rose slightly on
Wednesday as the market weighed a rebound in the dollar against
data showing strong demand growth from No. 2 consumer China.
                                
 U.S crude futures <CLc1>  settled up 23 cents to $79.28 a
barrel, after rising to $80 earlier in the day. Brent crude
futures <LCOc1> rose 45 cents to settle at $77.95 a barrel.
                                
 Data from China on Wednesday showed crude imports hit the
second-highest level in October, signaling that oil demand
continues a gradual revival from a sharp slowdown in late 2008
and early this year. [ID:nPEK22093]
                                
 The dollar rallied back from 15-month lows against major
currencies in a technical rebound after selling pressure failed
to push the U.S. currency through key levels, helping to knock
crude off earlier highs. [USD/]
                                
 "The rebound by the dollar definitely helped pull crude
back," said Tom Bentz, analyst at BNP Paribas Commodity Futures
Inc in New York.
                                
 Investors have poured money into oil and other commodities
this year when wider economic data suggests a rebound that
could spur fuel demand. Oil prices have felt pressure as well
when investors retreat into safer havens, such as the dollar.
                                
 Further weakness came as oil and natural gas companies
restored operations shut down due to Tropical Storm Ida earlier
in the week in the Gulf of Mexico. [ID:nN11368216]
                                
 The U.S. Minerals Management Service reported 31 percent of
Gulf of Mexico oil production and nearly 8 percent of natural
gas output remained shut on Wednesday. [ID:nN11195255]
                                
 Producer group OPEC raised its forecast for world oil
demand growth slightly, but added that fuel consumption may not
return to levels seen before the global economic slowdown.
[ID:nLB201308]
                                
 Data from industry group American Petroleum Institute
released late Tuesday showed a larger-than-expected increase in
U.S. crude oil stockpiles in the week to Nov. 6, as well as
gains in gasoline and distillate inventories. [API/S]
                                
 Traders were also awaiting U.S. inventory data from the
U.S. Energy Information Administration, delayed by one day
until Thursday due to the U.S. Veteran's Day holiday.
                                
 In Europe, crude oil inventories rose in October as
refiners reduced operation rates to match falling demand.
[O/EUROIL1]
                                
 Oil product volumes stored in floating storage has risen to
90.3 million barrels and now exceeds total daily oil
consumption on a global scale, according to ship brokers ICAP.
[ID:nLB165344]
                                
 The move was an upward revision of nearly 15 million
barrels from the previous estimate of 76 million barrels at the
end of October.
  (Reporting by Matthew Robinson, Robert Gibbons and Edward
McAllister in New York, Ikuko Kurahone in London; Jennifer Tan
in Singapore; Editing by John Picinich)