Brent oil price trading at $76 on good news from China

Brent oil prices are trading up around the $76 mark in Asia on Thursday as good news from China suggests that China’s economy will not suffer a serious correction in the near future.

In London, Brent crude oil futures for October 2010 delivery was trading at $76.03, 08.00 GMT on the ICE Futures Exchange.

Good News from China Boosts Brent Oil Futures

Chinese manufacturing growth improved and auto sales rebounded in August, suggesting that Chin’a economy may not be slowing as quickly as feared.

China’s economic activity has a significant impact on the rest of the world. Even though the US runs huge trade deficits with China, the Asian giant still ranks as America’s third largest export market, taking 6.7 percent of total US exports in 2009.

“A weaker US dollar and surprising changes on product inventories have provided upward pressure for oil prices.” said oil market analyst Jason Schenker of Prestige Economics.

Earlier this week Brent oil prices fell sharply as traders sold off on concerns over the pace of the US economic recovery and growing US oil stocks.

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