Tags: Commodities | energy | oil | price

Oil Prices Push Higher on Eurozone, China Data

Thursday, 22 August 2013 05:33 PM

Oil prices pushed higher Thursday helped by encouraging economic data from China and the eurozone.

Libya's partial resumption of oil shipments after weeks of protest had shut it down failed to dent the climb higher, in part because strikers continued to blockade other terminals.

In US trade, the New York benchmark WTI crude for October delivery gained $1.18 to $105.03 a barrel.

In London, Brent crude for October added 9 cents to $109.90 a barrel.

Demand was helped by a jump in the Markit eurozone PMI survey for August, which showed business activity had picked up sharply to a 26-month high.

"The upturn is being led by Germany, where growth accelerated again in August, driven in turn by rising domestic and export demand," said Markit chief economist Chris Williamson.

"So far, the third quarter is shaping up to be the best... since the spring of 2011," Williamson said, cautioning that the bloc was not yet entirely in the clear.

And HSBC's PMI for China's manufacturing sector jumped to 50.1 in August, up from July's 11-month low of 47.7, curbing worries that China's economy was stalling.

"The data feeds a more general expectation that economic growth will pick up over the second half of 2013 and into 2014," said Timothy Evans of Citi Futures.

Positive supply news failed to have much impact.

Libya's National Oil Company (NOC) announced a resumption of exports from the Brega terminal in the east.

But the Zueitina, Ras Lanuf, Al-Sedra terminals remained blockaded by striking security guards in a dispute over allegations of corruption in oil sales.

The state-owned NOC declared force majeure at all its main terminals in the east on Wednesday in a major blow to an industry that accounts for virtually all of the North African nation's foreign exchange earnings.

Force majeure exonerates the NOC from its responsibilities in case it breaches contracts to supply oil, if it invokes exceptional circumstances.




© AFP 2020

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Oil prices pushed higher Thursday helped by encouraging economic data from China and the eurozone.
Thursday, 22 August 2013 05:33 PM
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