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Brent Rebounds From 1-Week Low on China Manufacturing; WTI Rises

Brent rose from a one-week low after a Chinese manufacturing gauge beat forecasts, signaling increased demand from the world’s second-biggest oil consumer. West Texas Intermediate climbed inNew York.

Futures advanced as much as 0.5 percent in London. A preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 50.5 for September, compared with the median estimate of 50 in a Bloomberg News survey and a final reading of 50.2 for August. U.S.gasoline stockpiles probably shrank for a second week, a separate survey shows before an Energy Information Administration report tomorrow.

“The PMI data reduces concern in the market that crude demand in China will be affected by slowing growth,” said Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul. “For today, this will be the supporting reason for higher prices.”

Brent for November settlement gained as much as 51 cents to $97.48 a barrel on the ICE Futures Europe exchange and was at $97.36 at 1:30 p.m. Singapore time. It fell $1.42 to $96.97 yesterday, the lowest close since Sept. 15. The volume of all futures traded was about 19 percent below the 100-day average. Prices have declined 12 percent this year.

WTI for November delivery rose as much as 0.7 percent to $91.48 a barrel in electronic trading on the New York Mercantile Exchange. The October contract expired yesterday at $91.52, down 1 percent at the lowest close for front-month futures since May 2013. The U.S. benchmark crude was at a discount of $6 to Brent.

Chinese Economy

The so-called flash PMI today indicated that export demand may be helping China’s economywithstand a property slump, easing pressure on the government for more loosening measures. HSBC-Markit’s final reading for factory output is scheduled for release on Sept. 30.

China will account for about 11 percent of global oil consumption this year, compared with 21 percent for the U.S., according to the International Energy Agency in Paris.

U.S. gasoline stockpiles probably slid by 300,000 barrels to 210.4 million barrels in the week ended Sept. 19, according to the median estimate in the Bloomberg survey of six analysts. Distillate inventories, including heating oil and diesel, are projected to have increased by 350,000 barrels, while crude supplies may have expanded by 750,000 barrels.

Fuel Supplies

The American Petroleum Institute in Washington will publish separate supply data today. The industry group collects information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA, the Energy Department’s statistical arm.

In Libya, the Sharara oil field suffered no damage from fighting between militias and is resuming production, according to Mansur Abdallah, an official at Zawiya refinery. The field, which connects to the plant, was pumping as much as 250,000 barrels a day of crude before it was closed last week, shutting about 30 percent of the nation’s output.

Libya is seeking to restore output after a year of unrest reduced it to the smallest producer in the Organization of Petroleum Exporting Countries.

Brent has technical support along its 30-day lower Bollinger Band, data compiled by Bloomberg show. Futures halted an intraday drop yesterday near this indicator, at about $96 a barrel today. Buy orders tend to be clustered around chart-support levels.