After three straight days of falling, oil prices ascend on encouraging economic data from China, EU

26-Aug-13

In US trade, the New York benchmark WTI crude for October delivery rose by over a dollar to US$105 a barrel, while in London, Brent crude for October inched up to US$109.9 a barrel. Oil prices have started to move north on by encouraging economic data from China and the eurozone. The rise has not been hindered by Libya's partial resumption of oil shipments after weeks of protest. This could be in part because strikers continued to blockade other terminals. The Zueitina, Ras Lanuf, Al-Sedra terminals remained blockaded by striking security guards in a dispute over allegations of corruption in oil sales. The state-owned NOC declared force majeure at all its main terminals in the east on Wednesday in a major blow to an industry that accounts for virtually all of the North African nation's foreign exchange earnings. Demand was helped by a jump in the Markit eurozone PMI survey for August, which showed business activity had picked up sharply to a 26 month high. The upturn is being led by Germany, where growth accelerated again in August, driven in turn by rising domestic and export demand. And HSBC's PMI for China's manufacturing sector jumped to 50.1 in August, up from July's 11-month low of 47.7, curbing worries that China's economy was stalling.