BUSINESS

Oil rises above US$105 a barrel as China, EU manufacturing rebounds

08/22/2013 05:24 EDT | Updated 10/22/2013 05:12 EDT
NEW YORK, N.Y. - Oil had its first gain of the week Thursday, driven by a rebound in manufacturing in China and Europe.

West Texas Intermediate crude for October delivery rose $1.18 to close at US$105.03 a barrel on the New York Mercantile Exchange.

Crude had fallen US$3.61 a barrel, or 3.6 per cent, over the first three days of the week, mostly due to expectations that the U.S. Federal Reserve will start phasing out its monetary stimulus, possibly starting next month. The manufacturing data overrode those concerns, at least for a day.

The eurozone's purchasing managers' index, a key gauge of growth in both the manufacturing and services sectors, rose to 51.7 points in August from 50.4 in July, according to financial information company Markit. It was the highest reading since June 2011 and supported expectations that the eurozone's recovery from recession is gaining momentum.

As for China, HSBC Corp. said the preliminary version of its monthly purchasing managers index for Chinese manufacturing rose to 50.1 for August, a sharp improvement from July's figure of 47.7.

Elsewhere, North Sea Brent, the benchmark for international crudes, rose nine cents to US$109.90 a barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex, heating oil slipped one cent to US$3.07 a U.S. gallon (3.79 litres), wholesale gasoline gained three cents to US$2.96 a gallon and natural gas rose nine cents to US$3.55 per 1,000 cubic feet.

(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS.UN), (TSX:CVE)