Monday, 10 December 2012

Oil prices rise past US$86 per barrel after China releases data showing economic upswing

The price of oil rose after Chinese data showed higher growth in electricity consumption and industrial production.
Benchmark crude for January delivery was up 23 cents to US$86.16 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell 33 cents to finish at $85.93 per barrel on Friday.
Signs that China's economy is recovering from a slowdown suggest there will be an increase in demand for energy to fuel its manufacturing industries.
The Chinese government reported that factory output increased 10.1 per cent from a year earlier, compared to the previous month's rise of 9.6 per cent year-on-year. Retail sales rose 14.9 per cent, up from October's 14.5 per cent. Electricity consumption rose 7.9 per cent in November from 6.4 per cent in October, according to Natalie Rampono, a commodities analyst with ANZ Banking Group in Melbourne.
Brent crude, which is used to price international varieties of oil, rose 21 cents to $107.23 per barrel, on the ICE Futures exchange in London.

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