Current Crude Prices Rise Slightly with Positive Economic News

Current crude prices reflect a slight rise, strengthened by positive economic figures from China and against a background of conflict in the Middle East.

The U.S. benchmark for January gained 24 cents to a crude oil price per barrel of $89.15. While in London, the current crude price of Brent increased 39 cents to $111.62 per barrel.

So far it appears that oil prices are starting the new trading week higher, thanks to China’s positive economic data, said analyst Carsten Fritsch of Commerzbank.

During the weekend, Beijing said that the activity in factories increased for the second consecutive month in November. Moreover, recent figures show that the number-two economy of the world is rising from its latest decline.

The official purchasing managers index (PMI) of China reached 50.6. That is higher compared to the 50.2 and 49.8 PMI posted in the months of October and September, respectively. Moreover, that is the highest PMI since it reached 53.3 in the month of April. Any PMI higher than 50 signifies expansion.

Geopolitical conflict in the Middle East is also providing support to the per barrel oil prices, said Fritsch.

Together with Syria, Egypt, Gaza and Iran all act like trouble areas that could instantly flare up to the detriment of the Persian Gulf’s oil production.

With this condition, the per barrel oil prices should stay well-supported, particularly because financial investors are ever more betting on increasing prices once again.

Recently, Israeli representatives in both Britain and France were asked to explain the country’s latest actions regarding its continuing settlement activities within disputed territory, which the United Nations chief cautioned could remove hopes for peace.

That was the most recent in a set of high-level diplomatic demonstrations over Israel’s new plan to create 3,000 settler homes in the West Bank and East Jerusalem that was just confirmed by an official source. This move was widely considered retaliation for the earlier win of the Palestinians of the position of a non-member observer state in the UN.