Oil Up To Near $78 Ahead Of US Economic Reports

PABLO GORONDI

Oil prices gained slightly to stay above $77 on Monday, backed by the weaker dollar and strong economic data in China, which raised hopes for an increase in energy demand.

By mid-afternoon in Europe, benchmark crude for December delivery was up 27 cents to $77.27 a barrel in electronic trading on the New York Mercantile Exchange.

The contract fell $2.87 to settle at $77.00 on Friday as the dollar gained and stock markets dropped on news U.S. consumer spending and confidence had fallen in September.

Investors will be looking to a slew of economic indicators this week for further clues about the strength of the U.S. economic recovery. The Labor Department's October employment report will likely be the most closely watched report, but data on manufacturing, services and home sales could also move markets.

The Federal Reserve will also comment after a two-day meeting on interest rate policy.

Meanwhile, analysts were encouraged by the rise manufacturing activity in China, which could be a stimulus for greater oil demand.