Crude oil rose for a third day as a weaker dollar outweighed concerns about slower manufacturing growth in China, the world’s biggest energy consumer. Oil climbed as the dollar fell against the euro, increasing the appeal of commodities as an alternative investment. China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. Crude oil for September delivery gained as much as 32 cents, or 0.4 percent, to $79.27 a barrel on the New York Mercantile Exchange. It was at $79.23 at 10:56 a.m. Sydney time. The contract rose 59 cents, or 0.8 percent, to $78.95 on July 30. Futures climbed 4.4 percent in July, the biggest monthly gain since March. The dollar traded at $1.3079 a euro at 10:44 a.m. Sydney time, from $1.3052 on July 30. In China, the Purchasing Managers’ Index fell to 51.2 from 52.1 in June, the Federation of Logistics and Purchasing said on its website yesterday. A reading above 50 shows an expansion. A separate China PMI is due to be released today by HSBC Holdings Plc and Markit Economics. Brent crude for September settlement gained 27 cents, or 0.4 percent, to $78.45 a barrel on the London-based ICE Futures Europe exchange at 10:44 a.m. Sydney time. The contract rose 59 cents, or 0.8 percent, to $78.18 on July 30.

Source