Oil gains as China factory data improve

The price of oil rose Friday on signs that China’s manufacturing is gathering strength.

Benchmark crude rose 62 cents to $86.51 a barrel in morning trading on the New York Mercantile Exchange. However, gains could be tempered by concerns over a lack of progress in key budget talks in Washington.

HSBC Corp. said the preliminary version of its monthly Purchasing Managers’ Index rose to 50.9 in December from 50.5 in November. Numbers above 50 represent expanding activity. The improvement was a sign that energy consumption might be on the upswing in China.

via Business feed http://www.scmp.com/business/commodities/article/1106016/oil-gains-china-factory-data-improve