Share

Oil up after upbeat China data, Syria bombing

Singapore - Oil prices rose in Asia on Tuesday in response to better-than-expected Chinese manufacturing data and after the United States said it had led bombing raids against jihadists in crude producer Syria, analysts said.

US benchmark West Texas Intermediate for November delivery rose 31 cents to $91.18 while Brent crude for November also gained 33c to $97.30 in mid-morning trade.

Banking giant HSBC said early on Tuesday its flash purchasing managers' index (PMI) for the Chinese manufacturing sector came in at 50.5 in September, from a final reading of 50.2 in August. A reading above 50 indicates growth and anything below points to contraction.

Analysts had expected the figure to dip to 50.0. The index tracks manufacturing activity in China's factories and workshops and is a closely watched indicator of the health of the economy.

"What we are seeing with the Chinese PMI numbers is a strong rebound when analysts had actually priced in a possible contraction," Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

"The numbers released today bring about some sense of optimism as new orders and new exports in China saw marked improvement," he added.

Market sentiment in China has been weighed by a string of weak data for August, including a five-year low for industrial output growth and a surprise drop in imports, which have put in peril the government's target of 7.5% annual economic expansion for this year.

Chua said prices will also be lifted after the Pentagon announced late on Monday that the United States and its "partners" have launched bombing raids for the first time against Islamic State extremists in Syria.

Washington began air strikes against IS targets in Iraq on August 8.

The Islamic State (IS) group has overrun large swathes of Iraq and Syria and declared a "caliphate" in those areas.

The sweeping offensive began on June 9, preventing Baghdad from exporting oil via a pipeline to Turkey and by road to Jordan.

In Syria, a three-year civil war between the government and insurgents including IS has seen production diminish from 400 000 barrels a day in 2010 to around 25 000 barrels a day in January, according to the US Energy Information Administration.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.14
-0.1%
Rand - Pound
23.78
+0.0%
Rand - Euro
20.45
+0.0%
Rand - Aus dollar
12.45
-0.4%
Rand - Yen
0.12
-0.0%
Platinum
926.80
+0.7%
Palladium
1,026.50
+0.1%
Gold
2,322.83
+0.0%
Silver
27.37
+0.2%
Brent Crude
88.42
+1.6%
Top 40
68,520
+0.7%
All Share
74,494
+0.7%
Resource 10
60,134
+0.9%
Industrial 25
103,756
+0.9%
Financial 15
15,920
+0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders