Oil Rises as China Manufacturing, Stockpiles Boost Demand Bets

Oil advanced in New York as an increase in Chinese manufacturing and a decline in U.S. supply bolstered speculation fuel demand in the world’s two biggest energy consumers will rise.

Futures retraced yesterday’s 0.4 percent drop after a purchasing managers’ index showed manufacturing in China, the fastest-growing major economy, accelerated for a second month. An Energy Department report today will probably show crude inventories in the U.S. fell last week, according to a Bloomberg News survey of analysts.