Oil above $83 in Asia
Wednesday, 3 November 2010
BANGKOK, Nov 2 (AP): Oil prices rose above $83 a barrel Tuesday in Asia as stronger manufacturing in the world's two biggest economies - the US and China - boosted optimism that demand for crude will improve.
Benchmark oil for December delivery was up 45 cents at $83.40 a barrel at late afternoon Bangkok time in electronic trading on the NewYork Mercantile Exchange. The contract jumped $1.52 to settle at $82.95 Monday.
Oil traders were more optimistic after two US reports showed improvement in the manufacturing sector and in construction spending. Both came shortly after China said its manufacturing activity had improved.
The Institute for Supply Management reported Monday that US manufacturing activity expanded last month at the fastest pace since May. It credited an increase in new orders, particularly for autos and computers, as well as exports.
In addition, construction spending inched higher in September because of an increase in residential activity and government projects that helped offset weakness in commercial projects.
Benchmark oil for December delivery was up 45 cents at $83.40 a barrel at late afternoon Bangkok time in electronic trading on the NewYork Mercantile Exchange. The contract jumped $1.52 to settle at $82.95 Monday.
Oil traders were more optimistic after two US reports showed improvement in the manufacturing sector and in construction spending. Both came shortly after China said its manufacturing activity had improved.
The Institute for Supply Management reported Monday that US manufacturing activity expanded last month at the fastest pace since May. It credited an increase in new orders, particularly for autos and computers, as well as exports.
In addition, construction spending inched higher in September because of an increase in residential activity and government projects that helped offset weakness in commercial projects.