Brent oil flying higher, hits $83 in early trading Friday

ICE Brent oil futures are trading higher this morning with prices hitting $83 in early trading as bullish oil investors pile back into the black gold.

In London, Brent crude oil futures for November 2010 delivery was trading at $83.04, 08.00 GMT on the ICE Futures Exchange, the highest level for Brent oil since May 2010.

China Manufacturing Report Boosts Prices

Both Brent and WTI oil prices received a boost from this morning’s manufacturing report by China that eased concerns of a potential economic slowdown in the world’s second largest oil consumer.

Later today the main market focus will be on the US Institute for Supply Management report on US manufacturing. Any return to stronger numbers or a better than expected set of figures could boost oil prices further.

However, many analysts believe that crude oil futures maybe on a slippery slope above the $80 price range at the moment as a general glut in oil supplies remain.