Oil Rises a Third Day in New York After Spanish Bank Tests

Oil rose for a third day in New York as stress-test results bolstered confidence in the Spanish banking system, buoying optimism that Europe’s debt crisis can be contained.

Futures gained as much as 0.9 percent, reversing an earlier loss. Spanish stress tests reported a capital deficit of 59.3 billion euros ($76 billion), less than the 100 billion euros agreed as part of a bailout. Crude retreated earlier as manufacturing contracted unexpectedly in China.