Crude oil rose from a two week low as manufacturing expanded in the U.S. and China in October, signaling energy demand is increasing in the world’s two biggest oil consuming countries. Oil gained as the Institute for Supply Management said U.S. manufacturing grew at the fastest pace in more than three years. Chinese manufacturing climbed to the highest level in 18 months, according to a purchasing managers’ index from HSBC Holdings Plc today and a government backed index issued yesterday.
“It’s a great indication that the industrial component of these economies, which is the energy intensive component, is doing better than it was,” said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. “As opposed to the trend last year when it was falling, now it’s rising.” Crude oil for December delivery climbed $1.28, or 1.7 percent, to $78.28 a barrel at 11:23 a.m. on the New York Mercantile Exchange. Earlier, it touched $78.38 a barrel. Futures lost 4.4 percent last week, the first pullback in a month.....Read the entire article.
