Crude Oil Prices Rise to Highest Level

NEW YORK: Crude oil rose to its highest level in two weeks after Chinese manufacturing grew by the fastest pace in six months and encouraged the Federal Reserve will likely announce this week the policy in order to stimulate the U.S. economy.

Crude Oil Prices Rise to Highest Level

Tuesday, 2/11/2010 6:46:37 PM

NEW YORK: Crude oil rose to its highest level in two weeks after Chinese manufacturing grew by the fastest pace in six months and encouraged the Federal Reserve will likely announce this week the policy in order to stimulate the U.S. economy.

Oil prices rose 1.9% while the Federation of Logistics and Purchasing China announced the country's purchase index rose to 54.7 in October from 53.8. The Fed probably will come back to buy the assets, known as quantitative easing, after a meeting today and the 3rd of November. An industry report showed that U.S. factory production grew more than expected last month.

"The combination of strong Chinese data and the possibility of quantitative easing this week pushed the market makers more excited," said Phil Flynn, vice president of research at PFGBest in Chicago.

Benchmark crude for December delivery rose U.S. $ 1.52 to U.S. $ 82.95 per barrel on the New York Mercantile Exchange, its highest level for this contract since October 18. Oil prices have gone up 7.7% from a year ago.

Brent oil price for December delivery closed increased to U.S. $ 1.47 or 1.8% to U.S. $ 84.62 per barrel on the ICE Futures Europe exchange based in London.

China's purchase index put forward past the 53.8 median estimate of 13 economists by Bloomberg News survey results. China last year exceeded the U.S. in the world's largest energy use.

Factory Index Institute for Supply Management rose to 56.9 in October from 54.4 the previous month, according to the group based in Tempe, Arizona. Readings above 50 indicate growth. Economists expect the ISM manufacturing index to fall to 54, according to the median estimate of 75 projections in a Bloomberg News survey. Estimates range between 52 and 56.8.

By        : The Fed

Source  : Bisnis.com