Crude oil rose from the lowest price in a month before a U.S. report forecast to show that manufacturing expanded in the world’s biggest energy user.

Oil snapped four days of declines in New York as the dollar fell against the euro, increasing the investment appeal of commodities. U.S. factory production and housing starts probably gained in July, economists said before reports this week. Goldman Sachs Group Inc. said the oil market is strengthening, and repeated its forecast for a gain to $85 to $95 a barrel.
“The question is whether we’re seeing a genuine recovery that will lead prices above $80 or just a corrective rebound,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “The stuttering economic recovery will ensure that rallies will only go so far, and I expect we’ll see sideways trading between $75 and $78 this week.” “
Crude oil for September delivery climbed as much as 56 cents, or 0.7 percent, to $75.95 a barrel on the New York Mercantile Exchange and was at $75.77 at 10:49 a.m. London time. Brent crude oil for September settlement was at $75.40 a barrel, up 29 cents, on the London-based ICE Futures Europe Exchange.
New York contracts lost 0.5 percent on Aug. 13 to settle at $75.39, the lowest close since July 12.
The dollar fell to $1.2815 against the euro after reaching $1.2734 earlier today, the strongest rate since July 21. The U.S. currency touched the highest in nearly four weeks versus the euro after Japan said its economy expanded at the slowest rate in three years.
(Source: Bloomberg)