LONDON, June 30 (Reuters) - Oil prices held close to $112 a barrel on Thursday as worries about inflation and an impending rate rise from the European Central Bank balanced against a weaker dollar.
"We are in a state of strong vigilance," Jean-Claude Trichet told the European Parliament's Economic and Monetary Affairs Committee in Brussels, using a phrase that has become synonymous with a rate hike.
The ECB meets for a policy meeting next week.
Euro zone data, due at 0900 GMT, are forecast to show inflation ticked up to 2.8 percent this month, well above the ECB's target of close to but below 2.0 percent.
ICE Brent crude LCOc1 was down 41 cents to $111.99 a barrel at 0815 GMT after jumping more than 3 percent on Wednesday
