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By Bloomberg

Oil held gains near the highest price in more than a week before data that may signal the strength of China’s economy, the world’s second-largest crude consumer.

Futures were little changed in New York after rising 1.9 percent on Monday. An index of China’s manufacturing output was forecast at 50.5 in March, down from 50.7 in February, a Bloomberg News survey showed before a preliminary reading from HSBC Holdings Plc. U.S. crude stockpiles probably increased further from a record high last week, according to a separate Bloomberg poll before government data on Wednesday.

Oil has fallen 12 percent from this year’s peak in February as U.S. crude inventories and production surged to the highest level in more than three decades. Saudi Arabia, which led a decision in November by the Organization of Petroleum Exporting Countries to resist calls to cut output, is pumping near a record level, its petroleum minister said on Sunday.

“The Chinese economy is continuing to exhibit signs of softness,” Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone. “The flash PMI figure will be closely watched and if the recent trend continues you would anticipate it to be fairly soft.”

West Texas Intermediate for May delivery was at $47.18 a barrel in electronic trading on the New York Mercantile Exchange, down 27 cents, at 12 p.m. Sydney time. The contract advanced 88 cents to $47.45 on Monday. Total volume was about 74 percent below the 100-day average. Prices have decreased 11 percent this year.

U.S. Supplies

Brent for May settlement dropped as much as 26 cents, or 0.5 percent, to $55.66 a barrel on the London-based ICE Futures Europe exchange. It climbed 60 cents to $55.92 on Monday. The European benchmark crude traded at a premium of $8.53 to WTI.

Crude stockpiles in the U.S., the world’s largest oil consumer, probably expanded by 4.75 million barrels through March 20, according to the median estimate of six analysts surveyed by Bloomberg before the Energy Information Administration report. Inventories have gained the prior 10 weeks to 458.5 million, the most in weekly data compiled by the Energy Department’s statistical arm since August 1982.