By Alexander Kwiatkowski April 1 (Bloomberg) -- Crude oil rose to a 17-month high as equity markets advanced on signs of economic growth in Asia and the U.S., triggering buying by traders and commodity investors. Oil rose as European and Asian shares advanced after reports showed China’s manufacturing growth accelerated and Japan’s largest manufacturers became less pessimistic. A report later today is likely to show the growth in U.S. manufacturing accelerated in March. “People are taking every opportunity to buy oil and push it up higher,” said Gerrit Zambo, a trader at Bayerische Landesbank in Munich. “It is simply due to the positive market sentiment overall and also due to equities and the technical situation.” Crude oil for May delivery rose as much as 86 cents, or 1 percent, to $84.62 a barrel in electronic trading on the New York Mercantile Exchange, the highest since Oct. 14, 2008. It was at $84.42 at 11:09 a.m. London time. Brent crude oil for May settlement was up 71 cents at $83.41 a barrel on the London- based ICE Futures Europe exchange. Yesterday New York oil rose $1.39 to $83.76 after the dollar fell 0.7 percent against the euro, sliding lower for the third time in four days. A weaker dollar bolsters the appeal of commodities as an alternative investment. There will be no Nymex futures trading tomorrow because of the Good Friday holiday. Economic Data Economic data from the world’s second- and third-largest economies reinforced confidence in the global economic rebound. China’s manufacturing expanded at a faster pace while a Bank of Japan survey showed confidence among the nation’s largest manufacturers rose for a fourth straight quarter. The Stoxx Europe 600 index and the MSCI Asia Pacific Index were both up about 1.1 percent at 11:07 a.m. London time. A report from the Institute for Supply Management will probably show that U.S. manufacturing grew at a faster pace in March, adding momentum to the economic recovery in the U.S., the world’s biggest energy consumer. The institute’s factory index rose to 57 from 56.5, according to the median estimate in a Bloomberg News survey of 77 economists. Readings greater than 50 signal expansion. The Tempe, Arizona-based ISM will release the figures at 10 a.m. New York time. Other reports may show fewer Americans filed claims for jobless benefits and construction dropped. “After oil prices broke out of the $80-$83 a barrel trading range, traders jumped on the bandwagon, driving prices higher,” said Eugen Weinberg, senior analyst with Commerzbank AG in Frankfurt. “This is probably almost exclusively technical buying, with some long-term, long-only positioning.” To contact the reporter on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net

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