Crude Climbs On China PMI

Crude oil climbed from near to the lowest since June, and is trading above the $93.00 handle after China’s manufacturing activity topped estimates in November while worries over supply disruptions from Libya persist.

China’s manufacturing PMI was 51.4 in November on firm domestic and foreign demand, ahead of market forecasts for a reading of 51.1, signaling the world’s second-biggest oil consumer is sustaining its economic growth.

Further support to oil prices was given by the persistent worries over supply disruptions from Libya. Strikes and protests at Libyan oil fields and terminals limited supplies from the OPEC member.

“I think there is not too much to worry about on the demand side. It's the supply that is still very much uncertain the positive numbers out of China could reverberate for a couple of days to support oil prices”, said Ben Le Brun from OptionsXpress.

This week Envoys from Iran and six world powers will meet to start working out steps to implement the deal under which Tehran must curb its nuclear program in return for some respite from sanctions. Any agreements will weigh on oil prices.

Investors will be nervous this week ahead of key US data that will provide clues on the strength of the economy and when the Federal Reserve will begin scaling back its monetary stimulus. The data include 3rd quarter GDP, non-farm payrolls and ISM manufacturing.

- WTI crude oil futures for January is trading around $ 93.18 a barrel after rising $0.46

- Brent futures for January settlement is trading around $ 110.07 a barrel after rising $0.38

- Natural gas is trading at $ 3.923 per cubic feet after falling 0.78%

- Gasoline is trading at $ 2.6762 per cubic feet after rising 0.50%

- Heating oil (diesel) is trading at $ 3.0441 a gallon after rising 0.44%