SINGAPORE (Reuters) - Brent crude futures edged down on Tuesday, after rising nearly $2 a day earlier, as soft U.S. economic data renewed fears of weaker oil demand from the world's top oil consumer and a rebound in the dollar spurred selling. Brent crude for September fell 65 cents to $109.26 by 0550 GMT. U.S. crude was down 62 cents at $87.26 a barrel. Manufacturing in the New York area contracted for the third straight month in August, data showed on Monday, tempering any lingering hopes for a rebound in the second half of the year. The survey is one of the earliest regional guideposts to U.S. factory conditions and analysts said it boded poorly for the larger national survey due at the beginning of September. Separate U.S. data on Monday showed the housing sector remained weak with a gauge of homebuilder sentiment stuck at historic lows. "The manufacturing data took quite a hit, and that could account for the weakness," said Ben Le Brun, CMC Markets analyst in Sydney. "But it seems fears of the worst case scenario for the global economy have receded. We're going to see weaker growth, but growth nonetheless." Oil prices were also pushed lower by a stronger dollar, which makes commodities priced in the greenback more expensive for holders of other currencies.

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