The price of Brent crude oil rose to above $108 a barrel in early trading on Tuesday as China’s manufacturing activity expanded slightly, lifting hopes of higher oil demand, which in turn normally means higher oil prices.<\/p>\n
Latest Brent Oil Price<\/strong><\/p>\n In London, Brent crude oil futures for February 2012 delivery was trading at $108.84 a barrel, 07.43 GMT this morning on the ICE Futures Exchange. Oil markets were closed yesterday.<\/p>\n China Manufacturing Data<\/strong><\/p>\n In China, activity at big manufacturers expanded slightly in December, temporarily putting to rest fears that the world’s second largest economy could slow sharply in the wake of the euro zone crisis and hurt oil demand.<\/p>\n China’s official purchasing managers’ index (PMI) rose to 50.3 in December 2011 from 49 in November, indicating a slight expansion in business activity in China’s factory sector.<\/p>\n “China’s PMI number looks positive, better than most people had expected earlier on. “But caution remains in the market. The euro zone economy is declining, it’s in negative growth.” said Huang Yiping, chief economist for emerging Asia at Barclays Capital in Hong Kong.<\/p>\n Europe accounts for than 20 percent of China’s export market, Huang said.<\/p>\n Brent crude climbed $1.27 to $108.65 a barrel by 05.00 GMT on the first day of trading for 2012. US Light crude oil futures rose $1.69 to $100.52 a barrel on the NYMEX.<\/p>\n “This expansion in manufacturing data has helped change sentiment in the market on the first day of trading.” said Victor Shum, an oil consultant at Purvin & Gertz.<\/p>\n “Over the next few months, it will be a balance of economic issues in Europe and the US versus bullish geopolitical factors and the reality of economic growth in major Asian economies.” Shum added.<\/p>\n