Crude up $1/bbl on China manufacturing data

02 November 2009 11:44  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures gained more than $1/bbl on Monday, buoyed by upbeat manufacturing data from China, after falling more than 3% on 30 October.

At 11:20 GMT, December NYMEX light sweet crude futures were trading at $78.04/bbl, up $1.04/bbl from the previous close. Earlier, the US benchmark contract climbed to a session high of $78.08/bbl, up $1.08/bbl.

At the same time, December Brent on London’s ICE futures was trading at $76.42/bbl, up $1.22/bbl from the previous close. Earlier, the North Sea benchmark rose to a session high of $76.47/bbl, up $1.27/bbl.

The rise in crude was supported by a further increase in HSBC’s China Purchasing Managers’ Index (PMI), which hit an 18-month high for October of 55.4.

This is the seventh consecutive month in which the index revealed an expansion in China’s manufacturing sector.

The US dollar also lost ground against the euro on Monday, giving back some of the gains made during a rally on 30 October.

The stronger American currency, combined with declines in US equities and weakness in oil markets, resulted in crude prices tumbling more than $2/bbl on 30 October.

See John Richardson’s Asian Chemical Connections Blog
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By: James Dennis
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