Oil holds near $40 with stock markets rising

Oil holds near $40 with stock markets rising

BloombergOil held near $40 a barrel in New York as positive European manufacturing data and rising equity markets gave some respite to demand worries. Futures edged higher, buoyed by stronger-than-expected manufacturing figures from Germany, while S&P 500 futures advanced with European equities. Citigroup Inc. said it remains bullish on the outlook for oil, though the market is undergoing a fitful rebalancing. In the US, data from the American Petroleum Institute showed gasoline inventories shrink by 7.7 million barrels last week, according to people familiar with the matter. It also showed crude stockpiles increased by almost 700,000 barrels, though a Bloomberg survey estimates a decline. After a partial recovery this month, oil prices are now back in the same range as during the northern hemisphere's summer. With prospects for demand deteriorating