Oil up as government strikes debt deal

By CHRIS KAHN | August 1, 2011 | 10:28 AM EDT

NEW YORK (AP) — Oil is up after lawmakers struck a deal over the weekend to raise the government's debt limit and avoid a first-ever federal credit default.

Benchmark West Texas Intermediate crude for September delivery added $1.13 at $96.83 per barrel on the New York Mercantile Exchange. Brent crude, which is used to price many international oil varieties, gained $2.08 at $118.82 per barrel on the ICE Futures exchange in London.

Oil rose despite a series of weak readings on the U.S. and global economy, which could mean less demand for oil. The Institute for Supply Management said manufacturing activity in the U.S. barely grew in July. That followed a report on Sunday that China's manufacturing sector also slowed.

Gasoline pump prices were virtually unchanged on Monday at an average $3.705 per gallon.