Strong spending by US consumers and the government helped power faster-than-expected 3.8 per cent annual growth in the third quarter, overcoming the impact of hurricanes and oil prices that touched a record high of $70.85 in late August.

"This is a very positive, strong report and encouraging because it included Katrina and a spike in oil prices and we still just seem to have a lot of momentum going into the fourth quarter," said economist Kurt Karl of Swiss Re in New York.

Data from China of Friday revealed a 9.7 per cent jump in China's oil demand in September, the biggest leap for eight moths. The surge comes after months of unexpectedly weak figures from one of the world's fastest expanding markets.

"If we are seeing China back to growth, that is another stress factor back in the oil market," said Deborah White, senior energy analyst at SG Commodities in Paris.

US crude CLc1 settled up 13 cents at $61.22 a barrel. London Brent crude LCOc1 was up 28 cents at $59.42.

With the northern Hemisphere winter approaching, analysts and economists are divided on how much near-record prices are hurting demand in the world's top consumer the United States.

The US oil and gas industry is still struggling back from hurricanes that battered Gulf of Mexico rigs and refiners. Lost refinery output and high natural gas prices have led to concerns in some quarter that Americans could run short of heating fuel.

A threatened strike threat at Europe's largest refinery is also hanging over the market. Workers at Shell's 418,000-bpd Pernis plant in Rotterdam have said they will walk out on Monday afternoon if there is no progress in a dispute over pensions.

A one-day strike in Belgium over government plans to raise the retirement age disrupted shipping at Antwerp port but refineries in the area were unaffected.