* Oil prices keep momentum after 15 pct rise in 2010 * Chinese factory inflation down in Dec, supports oil * Coming up: ISM manufacturing index data, 10 a.m. EST NEW YORK, Jan 3 (Reuters) - U.S. crude oil futures prices rose Monday on expectations that improved global economic recovery will fuel demand growth in the new year and that cooled factory inflation in China might prevent the need for more monetary tightening measures. Crude oil prices on Friday ended the year up 15 percent. FUNDAMENTALS * On the New York Mercantile Exchange, February crude CLG1 rose 64 cents, or 0.7 percent, to $92.02 a barrel at 8:39 a.m. EST (1339 GMT), trading from $91.21 to $92.30, , highest front-month price since the $93.02 intraday peak hit on Oct. 7, 2008. * U.S. heating demand this week is expected to be 0.5 percent above normal, the National Weather Service said. Heating oil demand will average 4.3 percent below normal, while heating demand for natural gas will average 0.9 percent above normal, the NWS said. [ID:nLDE70209A] * China's factory inflation cooled in December. The official Chinese purchasing managers' index edged down to 53.9 in December from November's 55.2, below a median forecast of 55.5 in a Reuters survey of economists. [ID:nTOE6BU02S] * Operations were getting back to normal at Holly Corp's (HOC.N) refinery in Tulsa, Oklahoma following a turnaround, the company said Monday. [ID:nWNAB1716] MARKETS NEWS * U.S. stock index futures rose on hopes a year-end rally will continue in the new year as economic conditions continue to improve and as Chinese factory inflation tempered concerns of more monetary tightening. [.N] * The euro fell against the dollar in the first trading session of 2011, surrendering year-end gains on persistent worries about euro zone debt. But the dollar index .DXY measuring the greenback against a basket of currencies was stronger. [FRX/] * Gold climbed above $1,420 an ounce on euro zone debt fears. [GOL/] UPCOMING DATA/EVENTS * Institute for Supply Management releases December manufacturing index. 10 a.m. EST (1500 GMT) Economists in a Reuters survey forecast a reading of 56.9 versus November's 56.6. * U.S. Commerce Department releases November construction spending. 10 a.m. EST. Economists surveyed by Reuters forecast a 0.2 percent increase following a 0.7 percent rise in the previous month. 8:39 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 92.02 0.64 0.7% 91.21 92.30 34,261 209,645 CLc2 92.91 0.69 0.8% 92.06 93.21 11,085 74,605 LCOc1 95.62 0.87 0.9% 94.50 96.07 28,704 71,719 RBc1 2.4469 0.0166 0.7% 2.4250 2.4534 1,751 16,276 RBc2 2.4486 0.0154 0.6% 2.4273 2.4552 742 36,336 HOc1 2.5675 0.0251 1.0% 2.5340 2.5777 3,217 17,965 HOc2 2.5732 0.0247 1.0% 2.5480 2.5825 711 42,823 * NYMEX crude oil for February CLc1 rose 64 cents to $92.02 a barrel by 8:39 a.m. in volume of 34,261 lots. (Reporting by Robert Gibbons; Editing by John Picinich)

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