Brent crude jumped 30 cents to $123.18 a barrel after China’s official Purchasing Managers Index rose to 53.1, alleviating fears of an economic slowdown in the country.

US crude futures gained 21 cents to $103.23, reports Reuters.

Continued tension in the Middle East also threatened crude supplies, as the Kurdistan region stopped oil exports in a dispute with Baghdad over payments.

Meanwhile, Sudan and South Sudan accused each other of launching attacks in the border after a delay in talks aimed at ending hostilities.