Brent Holds Above $104, Upbeat Global Data Revives Demand Hopes

Brent futures held above $104 a barrel on Thursday, as upbeat data worldwide renewed hopes of a revival in demand growth, dampening concerns that ample supplies could weigh on prices.

Oil also tracked equities, with the S&P 500 closing at an all-time high for a fifth day on Wednesday following a slew of positive numbers from the United States to China and Germany.

With China's inflation only a little above forecast, investors expect accommodative monetary policies that have allowed them to take up positions in share markets and oil to continue.

(Read More: Key Levels to Watch for Crude Oil)

Brent crude had gained 6 cents to $104.40 a barrel by 0443 GMT, after settling 6 cents lower. The benchmark is still close to a one-month high of near $106 a barrel touched earlier in the week when an Israeli air strike on Syria stoked supply fears.U.S. oil slipped 8 cents to $96.53.

"We are seeing oil largely holding on to gains after the recent series of positive numbers that has followed the strong U.S. jobs data," said Ric Spooner, chief markets analyst at CMC Global Markets in Sydney.

"China's inflation was broadly in line with expectations, and there seems to be nothing there to suggest that the government will introduce any measure to tame inflation."

China's annual consumer inflation quickened to 2.4 percent in April from March's 2.1 percent due to higher food costs, data showed on Thursday.

The country's central bank is widely seen keeping its policy largely neutral with some fine-tuning to support the economy.

German industrial output unexpectedly jumped in March, fanning hopes that Europe's top economy is gaining traction after a disappointing end to 2012, helped by higher exports to the euro zone.

But oil is unlikely to rise much beyond current levels as ample supplies weigh on sentiment, Spooner said.

Signals are neutral so long as Brent oil hovers above support at $103.77, while U.S. oil faces resistance at $97.05, with only a break above that confirming a rise towards $99.19, said Reuters technical analyst Wang Tao.

(Read More: Why Oil Isn't Sweating Syria: Traders React)

U.S. crude oil inventories jumped to a fresh record last week as domestic production continued to climb, while gasoline stockpiles fell, data from the U.S. Energy Information Administration showed on Wednesday.

Commercial domestic stockpiles of crude hit 395.5 million barrels in the week to May 3, according to data from the EIA, the highest level since the agency began records in 1982.

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