By Nick Godt, MarketWatch MUMBAI (MarketWatch) — Crude-oil futures advanced Monday, lifted by hopes that European leaders will agree on how to tackle the euro zone crisis, while Chinese economic data pointed to growth in manufacturing this month. Crude for December delivery CL1Z +1.12% gained 53 cents or 0.6% to $87.93 a barrel on the New York Mercantile Exchange. Last week, the contract rose 0.7%. German Chancellor Angela Merkel and French President Nicolas Sarkozy on Sunday said a broad agreement to tackle the euro-zone crisis was taking shape ahead of a Wednesday summit. “Investors seem to be relieved by the progress made over the weekend by European leaders,” analysts at MF Global said in a note. “We expect the markets to work higher perhaps through to Wednesday, but we think that most of this ‘expectation rally’ will likely be fully priced in after that.“ Also lifting sentiment, an HSBC-compiled survey of Chinese of manufacturing for October climbed to a five-month high on a preliminary basis, moving back above the 50 mark that separates growth from contraction. Read more on China ‘flash’ PMI survey. However, a strong dollar was limiting the gains for dollar-denominated commodities, including crude oil and metals, according to Mumbai-based Angel Broking. The dollar index DXY +0.19% was up 0.2% in recent action. The dollar gained ground as earlier support for the euro vanished after data suggested contraction in private-sector activity in October. Meanwhile, the death of Saudi Arabia’s Crown Prince Sultan bin Abdulaziz Al-Saud on Saturday fueled uncertainty about leadership plans in the country that’s the largest global exporter of petroleum. This raises “questions about succession at a time of intense regional turmoil in the region,” MF Global said. Saudi Arabia had lifted production to offset lost supplies from Libya during its uprising that culminated in the ouster and death of Col. Moammar Gadhafi. Nick Godt is a MarketWatch reporter based in Mumbai.

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