Oil traded near a three-month high in New York as speculation that China will take more steps to boost economic growth offset signs of weakening demand in the U.S.
Futures advanced as much as 0.8 percent. Growth in China’s industrial production slowed while inflation cooled for a fourth straight month in July, providing more room for policies to stimulate the economy of the world’s second-biggest oil consumer. U.S. petroleum consumption fell 1.1 percent last week, the first drop in four weeks, the Energy Department said yesterday. OPEC trimmed its forecast for demand for its crude and said Iraq’s output surpassed 3 million barrels a day for the first time since 2002.