On Wednesday, Brent crude rose above $112 as the United States dollar weakened and a slew of positive economic indicators from the US and China eased demand concerns triggered by the debt crisis in Europe. By 0500 GMT, front-month Brent crude rose 52 cents to $112.05 a barrel after touching an intraday peak in the previous session that was above the contract's 200-day moving average of $112.45. U.S. oil gained 67 cents $101.38.

"Oil markets are still rallying on positive data, particularly from China, and expectations of more easing by the country to ensure steady growth," said Natalie Robertson, an analyst at ANZ. "Eyes are also on Europe as talks of a Greek default return. That's a factor weighing on markets."

After the positive data, Asian shares, the euro, and base metals held steady though market participants have now shifted their focus to Europe with Portugal testing investor confidence in a debt sale, and as talks of a default by Greece resurface.

China's data indicated new home prices fell in December from November to decline for the third straight month while the Chinese economy grew at 8.9 percent in the fourth quarter of 2011, the weakest pace in 2- years. The Chinese GDP data's slowing growth boosted hopes that the country might revive monetary easing to limit the deceleration.

Brent crude and oil prices were also supported by supply threats from the Middle East because of escalating tensions over Iran's nuclear program. From July 1, the European Union would ban the import of Iranian oil to give member states nearly six months to wind up existing contracts, under a proposal by rotating EU presidency holder Denmark, EU diplomats said.