Crude oil rose after a report showed Chinese manufacturing expanded at the fastest pace in five years, bolstering hopes that fuel demand will increase in the world’s second biggest energy consuming country. Oil advanced as much as 2 percent after the purchasing managers’ index for China, released today by HSBC Holdings Plc, rose to a seasonally adjusted 55.7 from 55.4, the highest since April 2004. OPEC oil output climbed 0.4 percent to 28.9 million barrels a day last month, a Bloomberg News survey showed.
“The Chinese manufacturing number is very strong and points to higher energy demand in the months ahead,” said Phil Flynn, vice president of research at PFGBest in Chicago. “The Chinese headlines were enough to outweigh reports that OPEC is increasing production.”
Crude oil for January delivery gained $1.05, or 1.4 percent, to $78.33 a barrel at 10:05 a.m. on the New York Mercantile Exchange. Futures touched $78.85, the highest since Nov. 23. Prices are up 76 percent this year. Oil tumbled 2.5 percent on Nov. 27 after Dubai World, a government investment company burdened by $59 billion of liabilities, sought to delay repayments. The company has begun what it described as “constructive” talks with banks to restructure $26 billion.....Read the entire article.
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