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Oil prices climb to near $87 on more consumer spending and inflation drop in China
NEW YORK (AP) ' Oil prices are climbing to near $87 per barrel on encouraging economic news in the U.S. and China.
Benchmark crude rose $2.50, or 3 percent, at $86.73 per barrel in New York, while Brent crude rose $3.17, or 2.9 percent, to $114.28 in London.
Prices jumped early in the morning after China said its inflation rate dropped last month, giving Chinese leaders more room to further stimulate the economy without overheating.
In the U.S., consumers spent more on cars, clothing and furniture last month. Consumer spending drives the U.S. economy, and an increase adds hope that a recession isn't around the corner.
Meanwhile, gasoline pump prices rose for a fourth straight day, adding nearly 2 cents, for a national average of $3.443 per gallon.