UPDATE 1-Oil rises towards $81 on dollar, economic data

                                
 * Weaker dollar, Asian economic data supports oil prices
                                
 * Japan retail sales jump, S.Korea account back to surplus
                                
 * Coming up: key U.S. monthly jobs report on Friday
                                
 
                                
 (Updates throughout, changes dateline from PERTH)
                                
 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 robust Asian economic
data.
                                
 U.S crude for May delivery rose 61 cents to $80.61 a barrel
by 0752 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 61 cents to $79.90.
                                
 "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 Pty Ltd in
Sydney.
                                
 The dollar index <.DXY> was down nearly half a percent 
against a basket of currencies on Monday, increasing risk
appetite and boosting commodity prices.
                                
 Strong economic data out of Asia raised optimism over the
strength of the global economic recovery and subsequent increase
in demand for fuel, helping to support oil.
                                
 
                                
 RETAIL SALES JUMP
                                
 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. [ID:nTOE62R01C]
[ID:nTOE62S00O]
                                
 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. [ID:nN26149991]
                                
 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 $84 mark -- the highest price
struck this year.
                                
 "Apart from Chinese demand, we haven't seen enough evidence
of a demand recovery. 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.
                                
 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. [ID:nN28227794]
                                
 Money 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]
 (Additional reporting by Fayen Wong in Perth; Editing by Sue
Thomas)