Despite General Motors (GM) filing for bankruptcy, crude oil prices continued to charge to seven-month highs on Monday on optimism about demand from China.

Oil is trading around double its 2009 lows, with the price on Monday rising $1.12 to $67.43 per barrel.

China reportedly said its industrial activity was increasing in May for the third month in a row, while the country’s Purchasing Managers Index shows China has played a role in the rising demand for oil.

“The Chinese production is causing bullish numbers for oil prices,” said Phil Flynn, vice president and senior market/energy analyst of Alaron Trading.

The U.S. is not showing great improvements for demand, leaving China’s growth in the lead as its manufacturing demand increases. Reuters reported the end of 2009 could result in oil ending around $60 to $70 a barrel, according the Oman’s oil minister for the small independent oil producer.

“OPEC is discussing $70 for oil, but I see it ending up around $74 to $75 per barrel, which is good for a potential top,” said Flynn. “With momentum remaining strong and driven by the dollar we are going to need stability in other markets.”

Oman is not a member of the Organization of the Petroleum Exporting Countries and produces around 760,000 barrels per day.

On Friday, reports said the rising numbers are also affecting the dollar, making the Euro come close to $1.42, while the dollar fell to about 94.83 yen, from 95.27 yen in New York.

“The Obama Administration helping with General Motors is bearish for the dollar,” said Flynn.

Meanwhile, heating oil is up 0.0477 cents per gallon at $1.7253, and RBOB gasoline is up 0.0085 leaving it at $1.9038, for Monday.

Gasoline prices are rising; however, the American drivers have not shown a change in their habits, but due to economic changes and recent job losses, this could be subject to change if prices continue to rise.

“I think the rise in gas prices is given by the rise in oil prices,” said Flynn. “We have seen refiners at low rates, but due to demand, oil prices are increasing, leasing to rising gas prices. The demand drop has bottomed out, but oil has raised a spike in price.”

After gold’s three-month high of $979.70 an ounce on Friday, it is down $1.60 per troy ounce, or $978.70.