WASHINGTON (Alliance News) - The price of crude oil was ticking higher Tuesday morning as demand growth concerns eased after upbeat manufacturing data out of the US and China.
Light Sweet Crude Oil (WTI) futures for January delivery, added USD0.31 to USD94.13 a barrel. Yesterday, oil gained over 1 percent after China reported upbeat manufacturing data over the weekend. China's manufacturing activity expanded at a steady pace in November led by increased production, a survey by the China Federation of Logistics and Purchasing and the National Bureau of Statistics revealed Sunday. The headline purchasing managers index recorded a reading of 51.4 in November, unchanged from October's 18-month high.
The Institute for Supply Management yesterday reported that US manufacturing activity in November expanded at its fastest pace since April 2011.
This morning the US dollar was lingering around its monthly low versus the euro, while diving to a two-year low against sterling. The buck continued to move higher versus the yen, while trading flat against the Swiss franc.
In economic news, industrial producer prices in the euro area decreased for the third consecutive month in October, and the rate of fall exceeded economists' expectations, latest data revealed. The producer price index for the domestic market dropped 1.4 percent year-on-year in October, statistical office Eurostat said. This followed declines of 0.9 percent each in August and September. Economists had expected prices to fall 1 percent in October.
Elsewhere, British construction sector activity grew at the sharpest pace in just over six years, led by solid expansion in output and incoming new work, a survey by Markit Economics and the Chartered Institute of Purchasing and Supply revealed. The headline purchasing managers' index rose to 62.6 in November from 59.4 in October, signaling another strong upturn in the construction sector. The reading was the highest since August 2007.
Today after the market hours, the API will release its US crude oil inventories report for the weekended November 29.
