Oil higher in Asia on Chinese demand hopes

Oil prices were higher in Asia yesterday as dealers were boosted by figures showing a rise in manufacturing activity in China, the world’s largest energy user, analysts said. New York’s main contract, West Texas Intermediate crude for delivery in May, gained 17 cents to $103.19 per barrel while Brent North Sea crude for May settlement was up 37 cents at $123.25 in the afternoon.

Official data on Sunday showed China’s manufacturing activity rose to the highest level for a year in March, easing concerns over a slowdown in the world’s number two economy.

“China’s manufacturing data helped edge up oil prices with hopes of strengthening demand, said Justin Harper, market strategist at IG Markets Singapore. The China Federation of Logistics and Purchasing said on Sunday the official purchasing managers index (PMI) rose to 53.1 from 51 in February, helped by an increase in new orders.

It marked the fourth consecutive month of expansion for manufacturing activity. A reading above 50 indicates expansion, while a reading below 50 suggests contraction.

AFP