Chinese And US PMI Help Brent Prices
Crude oil prices were lifted on Tuesday morning after strong data from the world's two largest consumers, the US and China, showed that both energy consuming giants were steadily regaining their footing. Brent crude oil traded at $111.41 at 5:25 GMT on Tuesday.
On Monday, manufacturing PMI data helped Brent climb to its highest price since September. CNBC reported that US data showed that the nation's manufacturing sector grew at its quickest pace in 2 ½ years in November. The results far outpaced analysts expectations and indicated that the nation's unemployment figures were also improving.
In China, similarly upbeat official PMI data showed that the nation's manufacturing grew to an 18 month high. The nation's better than expected November data was likely due to growing domestic and foreign demand.
OPEC members are set to meet in Vienna on Wednesday to discuss the group's future plans. Saudi Arabia's oil minister has been hinting at the possibility that the group could readjust supplies this week, adding to speculation that between civil unrest, sanctions and increasing US supplies, OPEC's crude supplies may tighten up.
In an effort to prop up oil prices, the organization could cut back on its output. The group is already missing out on more than half of Libya's exports as the nation struggles through a period of civil unrest that has closed down most of its oil export terminals.
Moving forward, US data will play a key role in Brent prices as improvements in the nation's labor market could prompt the Fed to start reeling in its stimulus spending.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.