Stockpiles down as US oil nears $85.60 per barrel

SINGAPORE: U.S. crude rose above $1 towards $85.60 a barrel on expectations of a drop in stockpiles and ongoing tension in Libya, offseting weak data from China.

U.S. crude inventories were forecast to have fallen last week due to lower imports, a preliminary Reuters poll showed on Monday ahead of weekly data.

HSBC's China Flash PMI showed its factory sector is likely to slow slightly for a second consecutive month in August as sluggish overseas demand saps new orders.

Copyright Reuters, 2011