UPDATE 1-Oil rises on weaker dollar, positive econ data

                                
   * Weaker dollar main support for higher crude
                                
 * Japan retail sales jump, South Korea sees trade surplus
                                
 * Tight range still in place for crude prices (Updates
prices, adds analysts comments)
                                
 By Fayen Wong
                                
 PERTH, March 29 (Reuters) - Oil prices rose over half a
percent on Monday, recouping the previous session's losses as
the dollar weakened and positive Asian economic data helped to
brighten the global economic outlook.
                                
 U.S crude for May delivery rose 55 cents to $80.55 a barrel
by 0602 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 52 cents to $79.81.
                                
 "Oil prices are mostly getting a lift from the weaker
dollar. We've also seen a fairly upbeat macro sentiment across
the market in recent weeks that is lending support to oil,"
said Toby Hassall, an analyst at CWA Global Markets in Sydney.
                                
 The dollar index <.DXY> was down 0.28 percent at 81.44
against a basket of currencies, while the euro trimmed early
gains after a jump on short covering by investors. [USD/]
                                
 Positive economic data from Japan and South Korea also
alleviated some of the concerns about slowing momentum in the
global economy and buoyed investors' risk appetite.
                                
 Japanese retail sales jumped the most in 13 years in the
year to February due to oil price rises and the lingering
effect of government stimulus, while South Korea's current
account swung back to a surplus in February on brisk exports.
[ID:nTOE62R01C] [ID:nTOE62S00O]
                                
 Having traded intraday 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 positive macroeconomic data, prices could struggle
to break above $84 -- a level they have failed to breach this
year.
                                
 "Given the anaemic demand recovery in the U.S. and Europe,
the underlying crude demand fundamentals do not warrant an
extension of last year's sharp rebound," CWA's Hassall said.
                                
 While short-term worries about Greece's fiscal health have
eased, concerns about other fiscally vulnerable economies in
the region such as Portugal and Spain could push oil prices
lower.
                                
 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 that reiterated demand forecasts made
last year. [ID:nN28227794]
                                
 All eyes this week are on the U.S. non-farm payrolls data
due out on Friday. 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. [ID:nN26149991].
                                
 On the geopolitical front, Canada will press the Group of
Eight leading industrialized nations to tighten United Nations
sanctions on Iran when it hosts a meeting of foreign ministers
from the grouping on Monday and Tuesday. [ID:nN28222051]
                                
 President Dmitry Medvedev said on Saturday he still
supported diplomacy to resolve the dispute over Iran's nuclear
programme but sanctions should not be ruled out.
[ID:nLDE62Q09F]
                                
 Momney managers cut their net long position in crude oil
futures on the New York Mercantile Exchange in the week through
March 23, the Commodity Futures Trading Commission said on
Friday. [ID:nN26568423]
 (Editing by Michael Urquhart)