Oil prices rose today over a weak dollar and signs from the US Federal Reserve and the European Central Bank, which alleviated fears about growth in oil demand.

Brent crude rose 31 cents to $120.49 a barrel, while US oil rose 37 cents to $103.07, reports Reuters.

The Federal Reserve said that the US economy expanded modestly in January through mid-February as hiring picked up across several districts.

Comments by a European Central Bank official about keeping a bond-buying programme as an option to help Spain also eased economy fears, reports Reuters.

The dollar weakened 0.25% against several currencies.