* Equities rise, dollar slips after Dubai worries wane
* Chinese business surveys at peaks, signals rosy outlook
* U.S. fuel data expected to show steady crude stocks
(Updates prices, changes quote in par 4)
By Edward McAllister
NEW YORK, Dec 1 (Reuters) - Oil climbed more than $1 to
above $78 a barrel on Tuesday, lifted by solid manufacturing
data from China and a weaker dollar.
U.S. crude for January delivery <CLc1> rose $1.27 to $78.55
a barrel by 2:11 p.m. EST (1911 GMT). Brent crude <LCOc1> added
$1.12 to $79.59.
Business surveys in China showed the world's second-largest
energy consumer has largely recovered from the global economic
downturn, laying the foundations for solid expansion in 2010.
[]
"China's manufacturing data was supportive and the weak
dollar is also supporting commodities," said Tom Bentz, analyst
at BNP Paribas Commodity Futures Inc. in New York.
Investors have looked to wider macro economic data in
recent months for signs of economic recovery and a potential
rebound in energy demand.
U.S. stocks rose, buoyed by hopes of economic recovery.
Data showed pending sales of previously owned U.S. homes rose
more than expected to their highest level in 3-1/2 years in
October. []
A weaker dollar also provided support as waning worries
about Dubai's debt helped dim the greenback's safe haven
appeal. A weaker dollar makes dollar-denominated commodities
like crude cheaper for holders of other currencies and tends to
support prices.
The catalyst for the easing concern about Dubai's debt was
an announcement on Monday from Dubai World, center of the debt
storm, that its planned restructuring of some units involved
$26 billion in debt.
"It looks like sentiment, primarily relief from Dubai,
because overall supply and demand has not changed," said Joseph
Arsenio, Managing Director at Arsenio Capital Management in
Larkspur, California, on crude's rise.
The American Petroleum Institute's weekly U.S. crude
inventory report will be released later on Tuesday. Crude
stockpiles rose by 400,000 barrels this week, according to an
updated Reuters poll. []
Oil has rallied from below $33 last December but has held
in a narrow band of $70 to $82 over the past two months. Some
analysts see little chance that would push prices above the
range given ample supplies and little sign of strengthening
demand.
"We see little impetus for a break to the upside, even if
economic indicators surprise to the upside this week," Credit
Suisse analysts said in a research note.
"The inventory overhang in the diesel and heating oil
markets should prevent prices from breaking higher for the time
being."
(Additional reporting by Robert Gibbons and Gene Ramos in New
York, Alex Lawler in London and Fayen Wong in Perth; Editing by
David Gregorio)
((Edward.mcallister@thomsonreuters.com; +1 646 223 6221;
Reuters Messaging:edward.mcallister.reuters.com@reuters.net))
