Oil prices rise after positive US economic data

Oil prices rose slightly Thursday, buoyed by better-than-expected data in the United States that offset worries about demand in the worlds biggest crude-consuming nation.New Yorks main contract, light sweet crude for December, added 32 cents from Wednesdays close to settle at $86.05 a barrel.Brent North Sea crude for delivery in December gained 64 cents, closing at $108.49 a barrel in London trade.Gains were capped by the stronger dollar, which rose in value amid upbeat data on US manufacturing and the jobs market.The stronger greenback makes dollar-priced oil more expensive for buyers using weaker currencies.From the US we saw better-than-expected readings for initial jobless claims and durable goods orders, while pending home sales bucked the trend of strong housing market indicators recently, said analyst Fawad Razaqzada at trading group GFT Markets.The net effect of todays US economic data was mildly dollar-positive which weighed slightly on all buck-denominated assets by late afternoon.In morning trade, crude oil futures had rallied strongly on bargain hunting a day after crude had struck multi-month low points on demand concerns after the US government reported ballooning supplies and poor European economic data.On Wednesday, the New York price fell to $84.94, its lowest point since mid-July.It was risk-on trade this morning as equities, oil and commodities all rallied, Razaqzada said.Sentiment was lifted in part by a surprisingly good UK GDP number and media reports that the Spanish government would formally ask the EU for a bailout package of about 60 million euros to recapitalize its banks.Additional support was provided by concerns about a reduction in Nigerian output due to severe flooding and oil theft, he added.Andy Lipow at Lipow Oil Associates noted there was a significant amount of crude supply around the world.The only thing that has been supporting crude oil prices is concerns with Iran, he said.Iran was recently threatening to remove its oil from the world market, which would tend to support prices.