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 advanced in New York.
Futures climbed as much as 0.6 percent in London. A preliminary Purchasing Managers’ Index for China 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. The U.S. and Middle East allies bombed Islamic State positions in Syria, an expansion of President Barack Obama’s effort to destroy the group that has seized swathes of Iraqi territory.
“We don’t see a hard landing in China this year,” Frank Klumpp, an analyst at Landesbank Baden-Wuerttemberg, said by phone from Stuttgart, Germany. “Even if we get some negative surprise from China, the demand side is less important for the market now than the supply side.”
Brent for November settlement gained as much as 62 cents to $97.59 a barrel on the ICE Futures Europe exchange and was at $97.47 at 12:51 p.m. London time. It fell $1.42 to $96.97 yesterday, the lowest close since Sept. 15. The volume of all futures traded was about 21 percent below the 100-day average for the time of day. Prices have declined 12 percent this year.
WTI for November delivery rose as much as 84 cents, or 0.9 percent, to $91.71 a barrel in electronic trading on the New York Mercantile Exchange. The October contract expired yesterday at $91.52, down 1 percent at the lowest close for front-month futures since May 2013. The U.S. benchmark crude was at a discount of $5.91 to Brent on ICE.
About Alfonso Esparza
Senior Currency Analyst, Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto. Follow on Twitterand on his Google+ profile.