Oil prices increased today after China’s manufacturing sector reported its highest level of output since March 2012 for the second consecutive month.
Brent crude increased by 45 cents to $110.14 a barrel, while US crude grew by 48 cents to $93.20, reported Reuters.
Prices increased after China’s National Bureau of Statistics data revealed that November’s manufacturing purchasing managers’ index of 51.4, unchanged from October and surpassing market expectations of 51.1.
Output increased by 0.1% to 54.5 in November – the fifth straight month of growth – to reach its highest level since May 2012.
The PMI feature for large manufacturing enterprises climbed to 52.4 in November, 0.1% higher than in October, to reach its highest level in 19 months. It has remained at more than 50 for 15 months.
Oil prices got a boost after the oil supply from the Organization of the Petroleum Exporting Countries (OPEC) decreased in November, remaining at less than 30 million barrels a day for a second month.
Libya’s output, which fell to around 250,000bpd compared with its usual production of 1.5 million amid fighting between radical Islamist fighters and the army, is a key reason for OPEC’s output shortfall.
All OPEC members are set to meet this week to decide on the group’s oil output, against a backdrop of slowing crude demand and unrest in member nation Libya.
The prices are set to shrink in the near future following the easing of tensions with Iran, following the OPEC member’s recent deal with world powers.
Iranian diplomats and six world powers are set to meet this week, to start working out steps to implement a deal under which Tehran will curb its nuclear programme, in return for some respite from sanctions.
Image: Brent’s value increased after a boost for China’s manufacturing sector. Photo courtesy of Ecow.