Strong manufacturing data from USA and China propel oil prices

04-Nov-10

Crude oil has spiked by almost US$1.50- New York's main contract, light sweet crude for December, settled at US$82.9, while in London, Brent North Sea crude for delivery in December delivery settled at US$84.62 a barrel. Oil prices have spiked on release of strong manufacturing data from China and the United States. Data revealed that Chinese manufacturing activity hit a six-month high in October, a sign that recovery in the world's second-biggest economy and top energy consumer has consolidated. In USA-the world's biggest oil consumer, a key industrial survey showed manufacturing unexpectedly picked up steam in October, raising hopes for a strong final quarter that could underpin the flagging US economic recovery. Crude oil futures rose on Tuesday to their highest settlement since May as the dollar weakened ahead of the expected announcement of the size of a Federal Reserve stimulus plan. Light, sweet crude for December delivery settled at US$83.90 a barrel.