MARKETS-OIL/ (UPDATE 6) * BarCap raises 2012 forecasts for Brent by $10 per barrel * Concerns over Chinese growth, U.S. debt, Greek crisis * Coming Up: U.S. durable goods/factory orders at 1400 GMT (Adds detail, comment, updates prices) By Christopher Johnson LONDON, July 5 (Reuters) - Oil jumped more than $1 per barrel on Tuesday after Barclays Capital raised its forecasts for crude oil in 2012, outweighing worries over the global economy. ICE Brent futures for August rose $1.90 to a high of $113.29 before easing back slightly to trade around $112.90 by 1420 GMT. U.S. crude was up $1.35 at $96.29 per barrel from Friday's close. U.S. financial markets were closed on Monday for the July 4 national holiday. Barclays Capital raised its 2012 forecast for Brent by $10 to $115 per barrel, and upgraded its 2012 forecast for U.S. crude by $4 to $110. The bank said in a note it left its Brent forecast for 2011 unchanged at $112 but cut its 2011 forecast for U.S. crude by $6 to $100. "The increase in expectations is due to a forecast further reduction in global spare capacity in 2012, together with a significant intensification of the geopolitical background to the oil market," Barclays Capital said. "Our detailed 2012 supply and demand forecasts show a continuation of robust emerging market demand," it added. The Barclays Capital report helped the market reverse losses that had pushed Brent down to an early low of $110.45. Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said the rise was a post-holiday bounce. "Oil in New York rebounded from early losses in moderate overnight volume as traders reassess their positions following the long holiday weekend," Armstrong said in a research note. Deutsche Bank said earlier it cut its forecasts for Brent in 2011 to $114 from $117.50, and for 2012 to $117 from $117.50. It said it expected Brent to climb to $125 in 2015. U.S. light crude futures were expected to average around $100 in 2011, Deutsche Bank said. Commodities markets are concerned about the outlook for the global economy, the Greek debt crisis and a stronger dollar. China, the world's second-biggest oil consumer and a major consumer of commodities, is experiencing a slowdown in economic growth, sounding warning bells across financial markets. Ratings agency Moody's said on Tuesday that China's local government debt may be 3.5 trillion yuan ($540 billion) larger than estimated, which could make banks liable for deeper losses and threaten their credit worthiness. CHINA WORRIES Data last week showed China's factory sector grew at its slowest pace in 28 months in June, fuelling fears of a big drop in demand, which could impact suppliers worldwide. "Almost all the economic data is weak and demand data is also poor. China is always a concern for oil markets because the country is such a big consumer," said Christophe Barret, global oil analyst at Credit Agricole. Commerzbank commodity analyst Carsten Fritsch said he believed the oil market was overbought and would fall. "Stocks are high, oil is being sold from strategic storage and it is not clear how long Libyan oil will be off the market," Fritsch said. A Libyan government spokesman told Reuters on Tuesday that Muammar Gaddafi was not negotiating with rebels with a view to giving up power but there have been repeated reports that the days of the Tripoli regime may be numbered. The return of around 1.3 million barrels per day of Libyan crude to world markets would depress prices, traders say. Oil traders were keeping a wary eye on the United States, where Treasury Secretary Timothy Geithner has warned of huge risks if Congress fails to raise the $14.3 trillion debt ceiling by Aug. 2, potentially triggering a default. The market awaited U.S. non-farm payrolls data on Friday for feedback on growth in the world's top oil consumer. Data on U.S. durable goods and factory orders for May due at 1400 GMT on Tuesday will also give an indication of the state of demand in the world's biggest oil consumer. Weekly U.S. oil inventory data from industry group the American Petroleum Institute and the government's Department of Energy will be delayed by a day to Wednesday and Thursday, respectively, due to Monday's Independence Day holiday. Oil prices came under some pressure from a stronger dollar , which rose 0.35 percent against a basket of currencies, making dollar-denominated oil more expensive. (Additional reporting by Francis Kan in Singapore; editing by Alison Birrane)

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