All data is delayed
See More

Oil rises on China manufacturing data

Oct 25 2012 07:56

Singapore - Oil prices climbed in Asian trade on Thursday on data showing a slight pick-up in China's manufacturing sector, but weak US energy demand and eurozone worries capped gains, analysts said.

New York's main contract, light sweet crude for delivery in December was up five cents to $85.78 a barrel while Brent North Sea crude for December advanced four cents to $107.89.

HSBC's preliminary purchasing managers' index (PMI) Wednesday showed manufacturing in the world's largest energy consumer at its highest level in three months, sparking talk of "green shoots of recovery in the Chinese economy", IG Markets said in a report.

The PMI hit 49.1 this month, up from 47.9 in September. A reading above 50 indicates growth and anything below points to shrinkage.

"Yesterday's improvement in HSBC's manufacturing activity survey has got tongues wagging that the Chinese economy is bottoming out," the IG Markets report stated.

But crude gains were capped by a weekly US inventories report issued by the Energy Information Administration (EIA) showing a spike in stockpiles in the world's biggest economy.

The EIA data showed reserves jumping 5.9 million barrels in the week to October 19, more than triple analyst forecasts of a 1.9 million barrel rise.

"The overall report points to more downside risks ahead," Phillip Futures said in a market commentary.

In the eurozone, private sector business activity fell at its fastest rate since June 2009 to a 40-month low, a closely watched survey by the Markit research firm showed.

Adding to negative sentiment was news that German business confidence slumped to a two-and-a-half-year low in October.

commodities  |  markets  |  oil


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote