Brent crude oil climbed higher on Thursday morning and traded at $101.49 at 8:37 GMT. The commodity picked up after data showing the US economy was weakening weighed on the dollar.

The state of the global economy has been pressuring Brent prices as some of the world's largest oil consuming economies released disappointing data this week.

After recent weak economic data suggested that the US economy had a tough road ahead, news of a steep decline in new orders for US manufacturing products pushed the greenback to fall 0.3 percent.

The dollar's weakness helped both the euro and commodities and both ticked up in price. However, the euro's rise was far from reflecting the state of the region's economy. Poor results from a purchasing managers survey coupled with falling business sentiment in Germany has many expecting that the European Central Bank will cut their already record low interest rates.

Speculation about an interest rate reduction has supported Brent prices as the commodity would see a lift if the bank follows through with the cut.

Markets are also focusing on British first-quarter gross domestic product data due out later on Thursday morning. Recent GDP figures from Germany, China and the US have all painted a bleak picture, and many are expecting the UK to follow suit.

to CNBC reported that the British economy is expected to have grown by 0.1 percent during the first quarter. After posting a 0.3 percent contraction in the last quarter of 2012, the region would avoid a recession if it lives up to economists' predictions.

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