Oil prices trading up from last week’s low, China manufacturing up

Crude oil prices are trading up from a two week low after manufacturing in China, the world’s second biggest crude oil user, expanded at the fastest pace in 18 months.

“Everything coming out of Asia shows they are developing better than other countries,” said Sintje Diek, an analyst with HSH Nordbank in Hamburg. “Elsewhere, demand is still weak, and it’s going to take a long time to lower the oversupply in crude and product inventories.”

Light crude oil futures for December delivery rose as much as $1.25, or 1.6 percent, to $78.25 a barrel in electronic trading on the NYMEX. It was at $77.87 a barrel at 10:45 a.m. London time. Earlier it fell to $76.56, the lowest price since October 15th.

Brent crude futures for December settlement climbed as much as $1.43, or trading up around 1.9 percent, to $76.63 a barrel on the London based ICE Futures Europe exchange. The contract was at $76.30 at 12:22 p.m. in London.

Tags:  China, oil prices