Crude oil prices rose in Asian trade today, buoyed by strong industrial production data from China, the world’s top energy consuming nation, analysts said.
US benchmark West Texas Intermediate crude for November delivery advanced 17 cents to $82.88 a barrel in late-morning trade and Brent crude for December delivery added four cents to $84.44.
Daniel Ang, investment analyst with Phillip Futures in Singapore, said investors were cheered after China said industrial production, which measures the output at factories, workshops and mines, rose 8.0 per cent year-on-year in September. That was a rebound from a more than five year low of 6.9 per cent in August.
He added that the figure overshadowed the figures showing China’s economy grew in the third quarter at its slowest pace since the depth of the global financial crisis.
“Industrial production is a good indication of crude oil demand from China,” he told AFP, although he added that it remained to be seen whether this will be sustained in the coming months.
Despite the latest gains, analysts have warned oil prices still face downward pressure owing to an oversupply of crude and reduced demand from the slowing global economy. Brent is struggling around four-year lows and WTI is at levels last seen in 2012.