Crude oil prices hold near $88

Manufacturing activity surged in China in October with the Purchasing Managers Index climbing from 52.9 to 54.8. China said Wednesday its trade surplus soared in October to $27.1 billion from $16.9 billion in September.

World leaders at the Group of 20 Nations summit in Seoul are concerned about massive trade imbalances, but little progress is expected. For now, China's strength is a dominant factor in commodities pricing and that is expected to continue at least through 2035, a recent International Energy Agency report said.

The U.S. Energy Information Administration said Wednesday U.S. crude oil inventories fell by 3.3 million barrels to 364.9 million in the week ending Nov. 5.

On the New York Mercantile Exchange, December delivery crude oil added traded on narrow margins, closing 3 cents lower at $87.78 per barrel.

Heating oil prices added 0.15 cents to $2.4281 per gallon. Reformulated blendstock gasoline prices rose 0.35 cents to $2.2392 per gallon. Henry Hub natural gas prices gained 1.2 cents to $3.939 per million British thermal units.

At the pump, the national average price of unleaded gasoline rose slightly to $2.864 per gallon from Wednesday's $3.863, AAA said.

Copyright 2010 United Press International, Inc. (UPI).