BLBG: Oil Rises as Report Shows Manufacturing Expanded, Equities Rise
June 1 (Bloomberg) -- Crude oil advanced in New York as manufacturing in the U.S. expanded at a higher rate than forecast in May and equities rose.
Oil increased as factories helped propel the economic recovery, causing manufacturing to expand for a 10th month, according to the Institute for Supply Management's gauge. Construction spending in the U.S. rose in April by the most since 2000. The Standard & Poor's 500 Index climbed 0.4 percent.
"The U.S. economy seems to be the one that's leading the world out of the doldrums right now," said Phil Flynn, vice president of research at PFGBest in Chicago. "It's easing concerns about a slowing economy in China and in Europe."
Crude oil for July delivery gained $1.17, or 1.6 percent, to $75.14 a barrel at 10:32 a.m. on the New York Mercantile Exchange. Prices rose as high as $75.33. Futures dropped 14 percent in May, the biggest monthly drop since December 2008.
The S&P 500 advanced 4.2 points to 1,093.61. The Dow Jones Industrial Average increased 58.42 points, or 0.6 percent, to 10,195.05.
Brent crude oil for July settlement rose 19 cents, or 0.3 percent, to $74.84 on the London-based ICE Future Europe exchange.
