Breaking News Bar
updated: 12/3/2012 9:45 AM

Oil hovers near $89 as China production improves

hello
Success - Article sent! close
 
Associated Press

BANGKOK -- The price of oil edged up above $89 a barrel Monday as investors were encouraged by signs that China's economy may be picking up after a prolonged slowdown.

By early afternoon in Europe, benchmark crude for January delivery was up 20 cents to $89.93 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 84 cents to close at $88.91 in New York on Friday.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Markets perked up after surveys by the state-sanctioned China Federation of Logistics & Purchasing and HSBC Corp. showed China's manufacturing is expanding.

"The reading marks the first improvement of manufacturing conditions in 13 months and signals the economy of the world's largest growth engine may have turned a corner," said a report from JBC Energy in Vienna.

Signs of recovery in China's economy, the world's second largest, suggest energy consumption is likely to grow or stabilize there, pushing oil prices higher.

Analysts also noted that the risk posed by the ongoing conflicts in the Middle East underpinned energy prices.

"Alongside Egypt, Syria, Iran and Gaza all remain latent trouble spots where the unrest could overspill into the oil production region in the Persian Gulf, where around a quarter of the world's crude oil is produced," said analysts from Commerzbank in Frankfurt in a research note. "Given this backdrop the oil price should remain well-supported, especially since financial investors are increasingly betting on climbing prices again."

Oil had its first monthly gain in four months in November, but is still trading below the 2012 average of $94.65 per barrel.

In London, Brent crude was up 35 cents at $111.58 on the ICE Futures exchange. In other energy futures trading on the New York Mercantile Exchange:

-- Heating oil added 1.01 cents to $3.0708 per gallon.

-- Wholesale gasoline was up 1.49 cents to $2.7452 per gallon.

-- Natural gas retreated 0.8 cent to $3.553 per 1,000 cubic feet.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.