NEW YORK?World oil prices rallied on Tuesday after five straight days of losses, thanks to a weaker dollar and rising equities following upbeat US economic data.

New York's main contract, light sweet crude for September, climbed 53 cents to $75.77.

London's Brent North Sea crude for delivery in October jumped $1.30 to $76.93 a barrel.

"Market sentiment has strongly improved," said Myrto Sokou, an analyst at Sucden Financial Research.

"Crude oil prices are tracking the softer US dollar and stronger global equity markets," she said.

But she cautioned that trading conditions were likely to remain "quite volatile and nervous" as economic "uncertainty remains on the table."

A weaker greenback makes dollar-priced commodities cheaper for buyers using stronger currencies, and therefore tends to stimulate demand.

The market also received a boost from a series of mostly positive US data.

Construction of new homes in the US edged up while industrial production recovered in July, government data showed.

In addition, US wholesale prices rose in July for the first time in four months, easing immediate deflation fears in the world's largest economy.

Oil prices had slid on Monday after Japan reported a sharp slowdown in second quarter growth, fanning worries about weak energy demand.

Elsewhere on Tuesday, it was reported that American oil company Anadarko has discovered offshore oil deposits in northern Mozambique, while studies are underway to determine if they are commercially viable.

The discovery was in wells at a depth of about 5,100 meters (three miles) in the Indian Ocean's Rovuma basin, near the border with Tanzania.