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May 22, 2014

Oil prices rise following positive US manufacturing data

Oil prices rose today following positive US manufacturing data, which provided support by boosting optimism for future oil demand growth.

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Oil prices rose today following positive US manufacturing data, which provided support by boosting optimism for future oil demand growth.

Brent crude was up by 12 cents to reach $110.48 a barrel, while US oil rose by four cents to settle at $103.78 a barrel, reported Reuters.

Crude value increased after an industry report showed the US manufacturing sector expanded at a stronger-than-expected rate in May, while factory output growth hit its fastest pace since February 2011.

Financial data firm Markit said its preliminary or flash US Manufacturing Purchasing Mangers Index rose to 56.2 in May from 55.4 in April.

"Conflicts in Libya and Ukraine also supported crude prices."

Oil prices also gained support from China’s positive manufacturing data, where HSBC/Markit’s Flash China Manufacturing PMI rose to 49.7 in May from April’s 48.1, reaching its highest since December 2013.

Conflicts in Libya and Ukraine also supported crude prices.

New supply disruptions occurred in Libya with protesters shutting down the headquarters of the company running the Brega oil port, the only eastern port to have remained open throughout most of the government’s nine-month stand-off with a rebel group.

In Ukraine, more than a dozen servicemen were killed on Thursday in an early morning clash with pro-Russian separatists, causing security concerns ahead of Sunday’s vote.


Image: Oil prices were supported by new supply disruptions in Libya. Photo: courtesy of Freedigitalphotos.net/Victor Habbick.

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