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Crude gains as Chinese output data points to global recovery

Published 12/14/2012, 01:37 PM
Updated 12/14/2012, 01:38 PM
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Investing.com - Crude oil futures rose in U.S. trading on Friday after Chinese manufacturing data came in strong, fueling hopes the global economy may be gaining steam.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD86.65 a barrel on Friday, up 0.88%, off from a session high of USD86.91 and up from an earlier session low of USD86.06.

The China HSBC flash purchasing managers' index hit 50.9 for December, a 14-month high.

A figure above 50 indicates expansion.

The news sparked demand for oil on sentiment a stronger global economy will demand more fuels and energy going forward.

Solid data out of the U.S. pumped up oil prices as well.

The Federal Reserve reported earlier that U.S. industrial production beat expectations in November, expanding 1.1% after a 0.7% decline in October.

Analysts had expected industrial production to rise 0.3% in November.

Elsewhere, the Markit research group reported that the U.S. manufacturing purchasing managers' index climbed to a preliminary 54.2 in December, its best performance since April, from 52.8 in November, beating market forecasts for a decline to 52.6.

Meanwhile, the U.S. Bureau of Labor Statistics reported earlier that the country's consumer price index decreased by 0.3% in November from October, more than expectations for a 0.2% contraction and off from a 0.1% rise the previous month.

The U.S. core consumer price index, which excludes more volatile food and energy costs, rose 0.1% last month, missing expectations for a 0.2% rise and off from a 0.2% increase in October.

Meanwhile on the ICE Futures Exchange, Brent oil futures for February delivery were up 1.19% at USD107.72 a barrel, up USD21.07 from its U.S. counterpart.






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