Brent Oil at $96.60 on China Manufacturing

Brent rose from a one-week low after a Chinese manufacturing gauge beat forecasts, signaling increased demand from the world’s second-biggest oil consumer. West Texas Intermediate climbed in New York.

Futures advanced as much as 0.5 percent in London. A preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 50.5 for September, compared with the median estimate of 50 in a Bloomberg News survey and a final reading of 50.2 for August. U.S. gasoline stockpiles probably shrank for a second week, a separate survey shows before an Energy Information Administration report tomorrow.

“The PMI data reduces concern in the market that crude demand in China will be affected by slowing growth,” said Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul. “For today, this will be the supporting reason for higher prices.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.