LONDON (SHARECAST) - Crude oil prices had an impressive run on Wednesday, rising over 3% to a two-week high with positive global economic data and the weaker dollar underpinning gains.
Crude for January delivery settled $2.64 higher at $86.75 a barrel on the New York Mercantile Exchange.
Manufacturing figures from China sparked a bullish mood with activity up for the fourth consecutive month in November. In the UK manufacturing activity struck a 16 years last month, way above analysts’ expectations.
Better than expected US job figures also encouraged hopes that the US recovery is on firmer footing. Payrolls processing firm ADP reported 93,000 private sector jobs were added in November, the biggest gain in three years. Goldman Sachs raised its forecast for US growth next year to 2.7% from 1.9% ahead of key jobs figures out Friday.
Comments from European Central Bank President Jean-Claude Trichet also boosted hopes for oil demand. Trichet said the ECB would intervene to stabilise the eurozone debt situation.
Weekly US crude and fuel supply data was mostly overlooked on a busy day for economic data. The Department of Energy said crude stockpiles increased by 1.1m barrels last week, confounding expectations of a decline. Gasoline supplies rose by 600,000 barrels against forecasts of supplies being unchanged. Distillates, which includes heating oil and gasoline, dropped by 200,000 barrels, instead of expectations of a 1.1m barrel decline.
Rampant risk appetite capped gains for gold on Wednesday.
Gold for February delivery increased $2.20 to settle at $1,388.30 an ounce on the Comex division of the New York Mercantile Exchange, its third consecutive day of gains.
