Oil rose from the lowest close in three months in New York on signs that China's seven-quarter growth slowdown is ebbing.

Futures rose as much as 0.7 per cent in New York after sliding for a fourth day yesterday. London's Brent crude advanced 0.5 per cent.

A preliminary Chinese manufacturing index released today by HSBC Holdings and Markit Economics was 49.1 in October compared with a final level of 47.9 for September.A reading above 50 indicates expansion.

"The market will be relieved, I think, to see that figure," said Ric Spooner, a chief market analyst at CMC Markets in Sydney.

"Given that China is such an important country for world growth and such a major consumer of commodities and oil or energy products, we're taking a little bit of heart from that."

Oil for December delivery advanced as much as 60 cents to $US87.27 a barrel on the New York Mercantile Exchange and was at $US87.21 a barrel at 10.27am in Singapore.

The contract closed yesterday at $US86.67, the lowest settlement since July 12. Prices are down 12 per cent this year.

Brent oil for December settlement gained 58 cents to $US108.83 a barrel on the London-based ICE Futures Europe exchange.

The European benchmark's premium to the New York-traded West Texas Intermediate grade was at $US21.63 compared with $US21.58 yesterday.

A separate, government-backed Chinese manufacturing index, which showed a second straight contraction in September, is due to be released on November 1. The final HSBC-Markit index for October will be published the same day.

China is the world's second biggest oil consumer.