BUSINESS

Oil prices rises above US$106 as U.S. manufacturing expands at strong pace

05/01/2012 11:11 EDT | Updated 07/01/2012 05:12 EDT
Oil prices moved higher Tuesday after data showed U.S. manufacturing expanded in April at the fastest pace in 10 months, signalling more demand for energy products.

Benchmark West Texas Intermediate crude rose $1.22 Tuesday to US$106.09 a barrel in New York. Brent crude, used to price varieties imported by U.S. refineries, rose 44 cents to US$119.91 in London.

A purchasing managers' trade group says U.S. manufacturing benefited from new orders and more production. A measure of employment also increased.

In addition, Chinese manufacturing expanded for a fifth straight month.

However, concerns remained about Europe's struggle with a massive government debt crisis that is hurting the region's economy.

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