Oil prices surged on Thursday to a fresh 18-month high, near $85 a barrel, bolstered by signs of strong growth in manufacturing across the world, particularly in China. The purchasing managers’ index surveys showed on Thursday strong growth last month from India to Europe. The closely watched China’s PMI jumped to 55.1 in March from 52.0 in February, pointing to strong economic growth in the first quarter. “Evidence of a strong rebound in the global movement of goods is continuing to accumulate,” said Paul Horsnell, head of commodities research at Barclays Capital. In morning trading in London, Nymex May West Texas Intermediate jumped to an intraday high of $84.62 a barrel, the highest level since October 2008. It later traded 69 cents higher at $84.45 a barrel. ICE May Brent rose 70 cents to $83.40 a barrel. The surge towards the $85 a barrel level is the clear sign that oil prices are breaking the $70-$80 a barrel price range of the last six months. Olivier Jakob, of Swiss-based Petromatrix, cautioned that rallies above $85 a barrel would “be difficult to sustain”. Oil products also rose strongly. Nymex May RBOB gasoline hit its highest since October 2008, hitting $2.3291 a gallon, up nearly 1 per cent on the day. ICE May gas oil rose 2 per cent to $697.5 a tonne: the highest in 18 months. Some analysts said that investors’ flows at the start of the second quarter were also propelling oil and other commodities higher. But commodities in which investors do not play a role, such as iron ore, have also posted strong gains recently. The rise in oil prices – 75 per cent over the past year – is starting to worry some policymakers. David Kirsch, director of market intelligence at consultants PFC Energy, said that increasingly Opec delegations – particularly those of the Gulf Arab states – are concerned about managing rising prices. “Concern is shifting toward the possibility of a sharp price rise that could derail the nascent economic recovery.” Trading volumes were on Thursday normal, but crude oil futures will not trade on Friday in either New York or London because of the Easter holiday. Elsewhere in commodities, base metals posted strong gains on the back of rising manufacturing activity. On the London Metal Exchange, copper for delivery in three months rose to an intraday high of $7,939.7 a tonne, the highest level since August 2008. It later traded up 1.4 per cent at $7,921 a tonne, supported by a drop in stocks. Aluminium rose 1 per cent to $2,351 a tonne. Nickel, the metal used in stainless steel, jumped 2.5 per cent on signs of strong demand, hitting $25,714 a tonne, its highest level since May 2008. Lead, zinc and tin also moved higher. Agricultural commodities were little changed after hefty losses on Wednesday on the back of signs of a bumper US corn and soyabean crop this year. But soft commodities were higher, with sugar, cocoa, cotton, rubber and coffee rising. Barry Callebaut, the world’s largest chocolate maker, said cocoa bean prices were unlikely to fall in the near term, warning that further upside was likely. Euronext.liffe July cocoa rose 0.6 per cent to £2,287 a tonne, nearing a 32-year high set in January.

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