Oil gains on positive US and China factory data

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The price of oil is ending higher on positive signs for manufacturing in the U.S. and China.

Benchmark crude gained 84 cents Friday to end at $86.73 on the New York Mercantile Exchange.

A survey of purchasing managers shows that manufacturing activity expanded in China this month. And U.S. data showed that the nation's factories have rebounded from Superstorm Sandy. Both reports indicate that energy consumption could be on the upswing in the world's two biggest economies.

Still, traders are concerned that President Barack Obama and Republican leaders are far from reaching a deal before the end of the year to reduce the U.S. budget deficit.

Gas pump prices continue to slide, with the national average at $3.29 a gallon, just slightly higher than a year ago.

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