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Oil rose for the third time in four days as manufacturing grew in the U.S. and China, the world’s two biggest oil-consuming countries.
Futures advanced as much as 1.2 percent as industrial production in the U.S. rose in November by the most in two years, the Federal Reserve reported. A preliminary purchasing managers’ index showed China’s manufacturing is expanding at a faster pace this month.
Output at U.S. factories, mines and utilities increased 1.1 percent last month after a revised 0.7 percent drop in October that was more than initially estimated, the Fed reported. Economists forecast a 0.3 percent advance. Manufacturing, which is a part of production, also surged 1.1 percent in November, the most this year.
In China, a preliminary purchasing managers’ index by HSBC Holdings Plc and Markit Economics indicated a reading of 50.9, for December, higher than a median estimate of 50.8 in a survey. It followed a reading of 50.5 in November, which was above the expansion-contraction dividing line of 50 and was the first growth in 13 months.
Oil also rose as the euro strengthened against the dollar after European Union chiefs pledged to seek a joint strategy for handling failing banks. A stronger euro and weaker dollar raise dollar-denominated oil’s appeal as an investment alternative.
West Texas Intermediate crude for January delivery advanced to $86.92 a barrel on the New York Mercantile Exchange. Prices are up 0.6 percent since Dec. 7 and are heading for the fifth weekly gain since Nov. 2.
Brent for January settlement, which expires today, rose $1.20, or 1 percent, to $109.11 a barrel on the London-based ICE Futures Europe exchange. The more actively traded February contract gained $1.11 to $107.57. The European benchmark grade was at a premium of $22.65 to WTI.
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