Oil rose, reversing part of the biggest decline in almost two weeks, as signs of accelerating economic growth in China, the world’s biggest energy consumer, countered concerns that Europe’s debt crisis is worsening. Futures gained as much as 0.5 percent after a report showed Chinese manufacturing expanded at the fastest rate in seven months in November. Crude also rose as the euro gained for the first time in three days against the dollar, increasing the appeal of commodities to investors. “China’s economy will continue to expand as much as possible and in five years their oil consumption will be much bigger,” said Tetsu Emori, a commodity fund manager at Astmax Ltd. in Tokyo. “Currently the market is more focused on the dollar and the euro and worried about the credit issues in Europe.” The January contract rose as much as 39 cents to $84.50 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.48 a barrel at 1:17 p.m. Singapore time. It earlier dropped as low as $83.63. Yesterday, futures lost $1.62, or 1.9 percent, the biggest one-day decline since Nov. 17. China’s Purchasing Managers’ Index rose to 55.2 from 54.7 in October, according to the country’s logistics federation today. That was more than the 54.8 median estimate of 14 economists surveyed by Bloomberg News. Europe’s Debt Prices slumped yesterday as concern mounts that Europe’s debt problems are spreading to countries including Spain, Portugal and Italy. The region’s governments sought to bolster the euro Nov. 28 by giving Ireland an 85 billion-euro ($111 billion) rescue package. The European currency traded at $1.3015 at 1:30 p.m. in Tokyo from $1.2983 in New York yesterday. It fell 6.3 percent versus the greenback in the past month, the most among its 16 major peers. An Energy Department report today may show U.S. crude and distillate fuel stockpiles declined last week. Oil capped its third monthly increase in November, climbing 3.3 percent. Prices are up 6.4 percent this year. U.S. inventories of distillates, which include heating oil and diesel, dropped 1.1 million barrels, according to a Bloomberg News survey of analysts before today’s report. The industry-funded American Petroleum Institute yesterday said they climbed 224,000 barrels. Supplies of crude declined 1.15 million barrels, according to the median of 16 responses in the survey. The API yesterday said they dropped 1.14 million barrels. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey. Brent crude for January settlement rose as much as 40 cents, or 0.5 percent, to $86.32 a barrel on the ICE Futures Europe exchange in London. It slumped $1.42, or 1.6 percent, to $85.92 yesterday. To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net; Ann Koh in Singapore at akoh15@bloomberg.net To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net

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