BLBG; Oil Rises to Four-Week High as Chinese Manufacturing Expands
Crude oil rose to a four-week high, as a Chinese manufacturing index expanded for the first time in nine months, a sign that the world’s third-biggest economy may be recovering.
Oil increased as the CLSA China Purchasing Managers’ Index rose to a seasonally adjusted 50.1 in April from 44.8 in March, the bank said today in a statement. A reading above 50 indicates an expansion. Energy demand from China helped fuel oil’s rally to a record $147.27 a barrel last year.
“People are pinning their thoughts on things getting better as we go through the year,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The market seems to be looking forward rather than at what’s immediately overhanging.”
Crude oil for June delivery rose 27 cents, or 0.5 percent, to $53.47 a barrel at 9:20 a.m. on the New York Mercantile Exchange. Earlier, it touched $53.74 a barrel, the highest since April 3.
Stocks in the U.S., Europe and Asia rose and the yen weakened as the Chinese manufacturing report added to signs that the global recession is easing.
“Oil has been pretty well supported above $50 a barrel over the past six weeks, and overall the market is very much linked to the performance of equities,” said Olivier Jakob, managing director of consultants Petromatrix GmbH.
Brent crude oil for June settlement rose 40 cents, or 0.8 percent, to $53.25 a barrel in electronic trading on London’s ICE Futures exchange. U.K. financial markets were closed today for a holiday.
