Oil prices rose slightly yesterday as dealers focused on a slew of global manufacturing data for clues about demand growth, while gains were capped by a strong dollar, analysts said.
Brent North Sea crude for delivery in December edged up 12 cents to stand at $85.98 a barrel in London midday deals.
US benchmark West Texas Intermediate (WTI) for December climbed 22 cents to $80.76 a barrel compared with Friday’s closing level.
“The focus right now is on the manufacturing data…. We are looking for signs of industrial growth, which will in turn mean greater crude demand,” Daniel Ang, investment analyst at Phillip Futures told AFP.
Activity in the eurozone’s manufacturing sector nudged higher in October as businesses cut prices.
The headline measure from data firm Markit ‘s monthly survey of purchasing managers at manufacturers rose to 50.6 from 50.3 in September. A reading above 50.0 for the Purchasing Managers Index indicates an expansion in activity, while a reading below that level signals a contraction.
Over the weekend, China’s official PMI came in at 50.8 in October compared with 51.1 in September, the government said on Saturday, raising concerns about slowing growth in the world’s second-largest economy and top energy consumer.
“Market participants will be keeping an eye on the recent macroeconomic indicators which could provide direction in the market,” said Myrto Sokou, senior research analyst at Sucden brokers.
She added: “The strong dollar currently weighs heavily on the oil market.”
A stronger greenback makes dollar-priced oil expensive for buyers using weaker currencies, denting demand.
