Aug 9 Reuters Oil prices edged up in Asian trading on Friday, heading for a weekly gain of more than 3 as U.S. jobs data calmed demand concerns and fears of a widening Middle East conflict persisted.

Brent crude futures rose 2 cents, or 0.03, to 79.18 a barrel by 0651 GMT. U.S. West Texas Intermediate crude futures were up 10 cents at 76.29 per barrel.

Both Brent and WTI were set to gain more than 3 on a weekly basis.

Risk sentiment recovered from the market rout in the Asian session today, with the Chinese inflation data offering positive signals in the economy, said independent market analyst Tina Teng, adding that U.S. jobs data was also bullish for oil.

China39;s consumer price index CPI rose last month at a rate slightly faster than expected, Friday statistics bureau data showed, edging up 0.5 from a year earlier in July, versus a 0.2 rise in June. That topped the expected 0.3 increase in a Reuters poll of economists.

The inflation data prompted a rise in China stocks, even though analysts attributed higher prices to weather disruptions that affected food supplies, and cautioned there was little sign of a pickup in consumer demand.

Sentiment in the United States was buoyed after data showed the number of Americans filing new applications for unemployment benefits fell more than expected last week, suggesting fears that the labor market was unraveling were overblown and easing recession concerns.

The dollar rose on the jobs data. A stronger dollar usually…