Brent crude prices hovered near unchanged levels this evening as concerns about Europe's economy after credit downgrades last week highlighted the risk to oil demand.
This offset support for oil prices from the weaker dollar and better than expected Chinese data on economic growth. Trading was volatile on the first day's trading of Brent's March contract.
China's economy grew at a better than expected pace last year, but growth was slower in 2010, making some traders and investors hopeful that the Chinese might begin more monetary easing.
The euro rose against the dollar after two days of losses as risk appetite improved on a better than expected German sentiment survey and Chinese economic growth data.
Brent crude edged up five cents to $111.39 a barrel. But US crude rose $1.98 to $110.68 a barrel after Saudi Arabia said it would like to keep prices high at around $100 a barrel.
