Oil is on the rise in early morning trade amid growing confidence for energy demand in China and the United States in particular. China reported its purchasing managers' index rising at its fastest rate in four months, while U.S. jobless claims fell more than expected. Gold too is gaining ground, reaching record highs for the sixth consecutive day as the dollar fell against the euro and growing expectations of further monetary easing by the Federal Reserve. At 0750 ET, Brent crude is up 1.1% at $83.23 a barrel, while light sweet crude is up 1.2% at $80.94 a barrel, and natural gas is down 1.4% at $3.82 a million British thermal units. Gold is up 0.5% at $1,316.60 an ounce, while silver is up 0.7% at $21.98 an ounce, and copper is up 1.6% at $2.71 a pound. China Petrochemical Corp, better known as Sinopec, will invest $7.1 billion in the Brazilian operations of Spain's Repsol YSF SA ( REP ). Sinopec will hold 40% of total shares in the Brazilian unit after a capital increase, as the Spanish company looks to raise money to develop offshore projects. Repsol is up nearly 7% pre-market on the NYSE. BP plc ( BP ) said that assets from the Gulf of Mexico will be used to finance its $20 billion fund set to compensate victims of the oil spill. The company also said that total costs to deal with the environmental disaster has now reached $11.2 billion. Speculation is growing that ExxonMobil Corp ( XOM ) will sell over 4,000 gas stations it has in Japan as demand in the country falls. Daily Yomiuri Shimbun reported that ExxonMobil Japan has invited bids for sales rights in Kyushu, southern Japan. In the mining sector, Gold Fields Ltd ( GFI ) will issue a $1 billion bond in the form of 4.875% notes due in 2020. The South African group said that net proceeds from the offering, which is expected to close Oct. 7, will be used to pay off debts as well as for general corporate purposes.

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