* Dollar weakens, nears 15-year low against yen
* China manufacturing growth beats forecasts
* Coming up: U.S. construction spending, 1400 GMT
(Updates prices, adds quotes, previous PERTH)
By Alex Lawler
LONDON, Nov 1 (Reuters) - Oil rose to around $82 a barrel on
Monday as expectations the U.S. Federal Reserve would commit to
a new round of monetary stimulus this week prompted further
weakness in the dollar.
The Fed is widely expected to announce new bond purchases,
known as quantitative easing, to pump more money into the U.S.
economy, the world's largest oil consumer, when its two-day
meeting ends on Wednesday.
U.S. crude for December <CLc1> rose 71 cents to $82.14 a
barrel by 1052 GMT. ICE Brent <LCOc1> was up 76 cents to $83.91.
"The dollar's weakened and the Chinese data is a good reason
for the market being higher," said Christopher Bellew, a broker
at Bache Commodities in London.
"In general, the market is in a sideways range, and we're
very close to the top of that sideways range as we get to $85 or
so. If the dollar strengthens again, we could come back towards
$80," he said, referring to Brent.
Some economists expect the Fed to buy between $80 billion
and $100 billion worth of assets per month. Estimates for how
much it will eventually spend vary widely, from $250 billion to
as high as $2 trillion. []
Some analysts said a Fed announcement at the low end of
expectations could put pressure on oil.
"We reiterate our view that the markets will likely find the
Fed's move slightly disappointing, leading to a short-term
period of price weakness across most markets," said Edward Meir,
an analyst at MF Global, in a report.
The dollar fell against a basket of currencies on Monday,
slipping back towards a 15-year low versus the yen. <.DXY> A
weaker dollar can boost the appeal of commodities as an
investment.
Oil also rose following unexpectedly strong manufacturing
data from China, the world's second-largest oil consumer, which
also gave a lift to shares in Europe and Asia.
Two surveys of the manufacturing sector, which are designed
to provide an early indication of conditions in a broad range of
industries, both jumped to six-month highs in October.
[]
Much of the growth in global oil demand this year is coming
from China and other emerging economies, offsetting largely
stagnant consumption in Europe and the United States.
Oil in New York has traded mostly between $70 and $85 for
the past year. The oil minister for Saudi Arabia, OPEC's top
exporter, said on Monday he hoped prices would stay where they
are now. []
(Additional reporting by Rebekah Kebede in Perth; Editing by
Jane Baird)
