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Oil prices rose in Asian trade today as data showing strong Chinese manufacturing activity fuelled hopes of a pick-up in demand in the world’s top energy consumer.
US benchmark, West Texas Intermediate (WTI) crude for delivery in July, gained 44 cents to $103.15 a barrel, while Brent North Sea crude for July delivery was up 25 cents at $109.66 a barrel in mid-morning trade.
Financial markets in Hong Kong, China, Taiwan and New Zealand are closed on Monday for public holidays.
China’s manufacturing activity strengthened to a five-month high in May, the Government had said yesterday, an optimistic sign amid slumping growth in the world’s second largest economy.
China’s PMI
The official purchasing managers index (PMI) reached 50.8 in May, the National Bureau of Statistics said in a statement, up from 50.4 in March.
The index tracks the manufacturing activity in China’s factories and workshops and is a closely watched indicator of the health of the economy. A reading above 50 indicates growth.
Desmond Chua, market analyst at CMC Markets in Singapore, said the data had a “positive overriding sentiment” on oil prices.
“This is the first time there is a steep rebound by new orders... which has been the declining factor in the past six months or so,” Chua said.
Analysts said that investors will also be closely watching a flurry of US data releases this week for clues about the health of the world’s biggest economy.
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