Reuters reported that Brent crude rose hovering above USD 115 per barrel as a softer dollar and persistent Middle East tensions tempered demand worries triggered by euro zone debt concerns and weak US economic data.

The euro fell to a record low against the Swiss franc on worries that Greece was again teetering on the brink of a financial crisis while the dollar index ticked down 0.6%, dented by data showing the US economy grew less than expected in the Q1.

Mr Victor Shum an analyst at Purvin & Gertz said that the immediate factor impacting crude's trade direction is the US dollar, which is helping to support prices. A softer dollar makes commodities priced in the greenback more attractive to consumers using other currencies. It's also the Memorial Day holiday in the US and most traders wouldn't want to be caught short over the long weekend.

Brent crude rose 32 cents to USD 115.37 a barrel by 0454 GMT. US crude was up 65 cents at USD 100.88 after falling more than 1%. Both benchmarks were headed for monthly losses in May, snapping eight month winning streaks.

According to technical charts, a bullish target at USD 118.43 per barrel is intact for Brent crude while US oil may zigzag up to USD 104.60 per barrel as a rebound that started from the May 17 low of USD 95.02 has not completed.

(Sourced from Reuters)