BLBG:Crude Oil Halts Two-Day Decline in London on Speculation of Rising Demand
Oil halted a two-day drop in London on speculation that economic growth in China, the world’s largest energy user, will withstand measures to tame inflation.
Brent reversed losses of as much as 0.8 percent. Orders placed with U.S. factories rebounded in May after falling in April by the most in almost a year, according to a Bloomberg News survey before a Commerce Department report today. The People’s Bank of China said yesterday the country faces inflationary pressure and the central bank will maintain a “prudent” monetary policy.
“We do not think China will sacrifice its growth to contain inflation,” said Harry Tchilinguirian, London-based head of commodity-markets strategy at BNP Paribas SA.
Brent oil for August settlement rose 99 cents to $112.49 a barrel on the ICE Futures Europe exchange as of 11:19 a.m. London time.
To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
