Oil Rises to Seven-Month High on China Manufacturing Expansion - Bloomberg

June 1 (Bloomberg) -- Crude oil rose to the highest sinceNovember as China’s manufacturing expanded for a third month,signaling that fuel demand in the world’s second-biggest energyconsumer may increase.

Manufacturer of Diesel Tanks India.

Oil climbed as much as 1.8 percent after the U.S. dollarfell to its lowest against the euro since December, heighteningthe need for commodities to hedge against inflation. Chinaincreased prices of gasoline and diesel by as much as 8 percent,a move that may prompt refiners to boost crude purchases. “Recovery optimism is on a roll with green shoots eruptingeverywhere,” said David Hufton , managing director of PVM OilAssociates Ltd. in London. The “stock overhang and theprospects of permanent damage and change to oil demandelasticity are being swamped by the macro factors.” Crude oil for July delivery rose as much as $1.98, or 3percent, to $68.29 a barrel on the New York Mercantile Exchange.That’s the highest since Nov. 10. The contract traded at $67.85at 12:32 p.m. London time.

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