Brent rises toward US$ 112 as data shows china growth revival

Tuesday, 4 December 2012 00:00 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): Brent crude rose toward US$ 112 per barrel on Monday on signs of reviving economic growth in China, the world’s second-biggest oil consumer, and supply concerns triggered by tension in the Middle East.

Activity in China’s manufacturing sector quickened for the first time in 13 months in November, a survey of private factory managers found, adding to evidence of a pickup after seven quarters of slowing growth.

China’s data “Has been broadly supportive of risk markets and entirely consistent with recent numbers suggesting overall improvement in growth,” said chief market analyst, CMC Markets in Sydney Ric Spooner.

“The market will continue to build a significant risk premium on the probability of disruptions to oil supplies from the Middle East,” he added.

Front month Brent futures were trading up 34 cents at 111.61 per barrel by 0451 GMT, after rising 2.3% in November. The contract rose to a high of US$ 111.70 per barrel immediately after the China data release.

US crude added 22 cents to US$ 89.13 per barrel. The contract has broken through a key resistance at US$ 88.75 and could rise to US$ 89.80, according to Wang Tao, Reuters market analyst for commodities and energy technicals.