Oil held above $113 a barrel on Thursday as Chinese economic data signalled stabilisation in the economy of the world's second-largest oil consumer while concern over supplies in the Middle East provided support.

China's economy grew 7.4 percent in the third quarter from a year ago, in line with forecasts, while industrial production, retail sales and investment data were all slightly ahead of expectations.

Brent crude for December delivery was up 10 cents at $113.32 a barrel by 0818 GMT, after settling 78 cents lower. U.S. oil for November was down by 15 cents to $91.97.

While the overall GDP numbers were in line with expectations, retail sales, industrial output and other numbers are stronger if you look at the break down," said Ben Le Brun, a market analyst at OptionsXpress in Sydney.

"I would expect a continuation of the momentum on the back of these numbers."

Brent has gained about 5 percent this year, partly due to supply concerns. The risk of wider supply disruption arising from Iran's nuclear programme is still putting a floor under the market.

"The geopolitical worries in the Middle East are supporting prices," Le Brun said. "We will see prices surge if there is further escalation, but I hope the United States and Iran are able to resolve their differences without that."

In another sign of Tehran defying international demands to curb its disputed nuclear programme, Western diplomats said Iran was believed to be increasing its uranium enrichment capacity at its Fordow plant buried deep underground.

A rise in U.S. crude stocks reported on Wednesday limited oil's rally, as did concerns about Europe's debt crisis. U.S. crude stocks rose by 2.86 million barrels, more than analysts expected.

European leaders are due to discuss banking supervision at a summit on Thursday, but no substantial decisions are expected. In Greece, workers went on strike for the second time in three weeks over wage and pension cuts.