SINGAPORE (Reuters) - Oil rose on Wednesday, supported by hopes of a U.S. debt deal, a weakening dollar against the euro and tightening crude stocks in the world's largest oil consumer. Brent crude climbed 57 cents to $117.63 a barrel by 0228 GMT, adding to gains of more than a dollar in the previous session. U.S. crude for August delivery, which expires at the end of trading on Wednesday, jumped 85 cents to $98.35 a barrel. "Any positive news on either the U.S. debt ceiling and the Greek second bailout will push up the market," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp. "Traders are just waiting for some confirmation that things are progressing so they can put these two economic issues behind them." According to technical charts, Brent must rise past $120 to break through its current tight trading range, while U.S. oil may continue to rise towards $100.59, Reuters analyst Wang Tao said. A group of Democratic and Republican senators offered an ambitious plan on Tuesday that could revive stalled U.S. debt talks and the prospect of a long-term deficit reduction deal to avert a default by the United States. With just two weeks left until the federal government runs out of money to pay all of its bill, President Barack Obama seized on the plan by the so-called Gang of Six as a "very significant step" and urged congressional leaders to start discussing it. On the other side of the Atlantic, German Chancellor Angela Merkel doused expectations of any comprehensive solution to Greece's debt crisis at an emergency euro zone summit on Thursday, saying "further steps will be necessary and not just one spectacular event which solves everything."

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