Crude oil prices rose in Asia today with a pick-up in China’s services industry providing support ahead of Beijing’s leadership transition and the US presidential election, analysts said.
New York’s main contract, light sweet crude for delivery in December, gained 13 cents to $84.99 a barrel and Brent North Sea crude for December delivery added 14 cents to $105.82.
Asian markets were “lifted by China’s non-manufacturing PMI data, which showed an improvement,” IG Markets said in a report.
It added that the figures back up a consensus opinion that the economy has come to the end of its slowdown, supported by last week’s data showing an increase in manufacturing activity.
“This week is all about changes in leadership and policy meetings which are likely to keep traders firmly sat on the sidelines,” the report said.
US President Barack Obama and challenger Mitt Romney go into tomorrow’s election neck-and-neck with markets waiting to see who will be the next leader of the world’s biggest economy and oil consumer.
Obama had a lift on Friday when the Labour Department said 171,000 new jobs were created in October, well above forecasts.
China begins its power transition on Thursday, fuelling market sensitivity as traders monitor developments in the world’s biggest energy consumer.