31 Dec '11, 3pm
Drumbeat: December 31, 2011
Oil fell, paring a third annual increase, as Chinese manufacturing contracted for a second month in December, spurring concern that demand from the world’s second-largest crude-consuming country may slow. Futures dropped 0.8 percent after the report by HSBC Holdings Plc and Markit Economics also showed China’s exports fell for the first time in three months as Europe’s debt crisis reduced orders. Oil advanced 8.2 percent in 2011 as a collapse in Libyan exports cut supply, U.S. stimulus measures revived the economy and Iran threatened to close the Strait of Hormuz.