Oil Trades Near Three-Day High on Supplies, China Manufacturing

Oil traded near the highest level in three days in New York on signs that China’s manufacturing will expand and as stockpiles unexpectedly fell in the U.S., the world’s biggest crude user.

Futures were little changed after climbing 0.7 percent yesterday. A preliminary reading for China’s purchasing managers’ index was 50.4, indicating the first expansion in 13 months. U.S. crude inventories dropped 1.47 million barrels last week, according to the Energy Department. Supplies were forecast to increase by 1 million barrels, according to a Bloomberg News survey of analysts.