* China manufacturing rose in August
* Technicals show oil may hit $81 []
* Coming Up: U.S. Sept ISM; 1400 GMT
By Florence Tan
SINGAPORE, Oct 1 (Reuters) - Oil rose above $80 on Friday,
staying at a seven-week high, after stronger than expected
economic data from China and the United States raised hopes of
demand recovery at the world's largest consumers.
China's manufacturing sector gained momentum last month,
the official purchasing managers index (PMI) number showed,
providing further evidence that the economy is pulling smoothly
out of a second-quarter swoon. []
U.S. crude for November <CLc1> rose 41 cents to $80.38 a
barrel at 0247 GMT, after posting an 11.2 percent gain in
September, the largest monthly jump since May 2009.
ICE Brent <LCOc1> for November was 34 cents higher at
$82.65 a barrel.
"The China PMI data shows that the manufacturing sector is
accelerating and will result in stronger oil demand," said
Michelle Kwek, an analyst at Informa Global Markets in
Singapore.
"This has boosted sentiment and keep oil prices supported."
China's financial markets are closed for a week from Oct. 1
to 7 for the National Day holiday.
In the U.S., Thursday's data showed new jobless claims fell
last week, regional manufacturing grew faster than expected
while consumer spending was stronger than expected earlier in
the year.
"All eyes will be the Institute for Supply Management (ISM)
report on US manufacturing," Peter Beutel, president of U.S.
trading advisory Cameron Hanover, said in a note.
"Any return to stronger numbers - or a better-than-expected
set of figures - would bring in more buying, we would expect."
Economists in a Reuters survey expect a reading of 54.5
versus 56.3 in August.
The positive economic data has kept the U.S. dollar steady
on Friday after dropping to an eight-month low against a basket
of currencies in the previous day. []
"The dollar could well rally further, downplaying the
extent of QE (quantitative easing) needed and push down U.S.
treasury yields," said Informa's Kwek.
A stronger dollar makes oil less affordable to holders of
other currencies.
The market is also keeping a close watch on Ecuador, an
OPEC member country which typically exports around 300,000
barrels per day of crude, after Thursday's military and police
protests thrust the country into political unrest.
Ecuador's state oil company Petroecuador said on Thursday
its operations had not been affected by political unrest and
that the army was reinforcing security at its oil fields.
(Editing by Ed Lane)
