Marginal improvement in oil prices on positive US economic reports

05-Oct-12

Benchmark oil on the Nymex for November delivery rose to US$88.3 per barrel at midday in Asia. On Wednesday, oil fell by 4.1% to US$88.14 per barrel in New York - its biggest decline since May 4. Brent crude has inched up to US$108.60 in London. The marginal improvement can be attributed to positive US economic reports that have offset some of the pessimism about global growth prospects. Reports showed improvement in the US services sector and a modest uptick in private sector hiring last month. This offset data released on the previous day that showed China's services sector expanding at a weaker pace in September.