STOCK MARKET WATCH - Wednesday, 1 February 2012

[Ghost Dog]

24. Oil Rises in New York After Unexpected Increase in Chinese Manufacturing

Oil rose in New York after China’s manufacturing index unexpectedly rose, boosting optimism that the world’s second-biggest crude consumer is withstanding Europe’s debt crisis.

Futures rose as much as 0.5 percent after China’s purchasing managers’ index increased to 50.5 from 50.3 in December, exceeding the median estimate in a Bloomberg News survey for a reading below the 50 level that divides expansion from contraction. Oil fell for a third day yesterday after the government said consumer confidence and business activity cooled in the U.S. Data from the American Petroleum Institute indicated oil stockpiles rose to the highest level since November.

Crude for March delivery increased as much as 51 cents to $98.99 in electronic trading on the New York Mercantile Exchange and traded at $98.97 at 4:40 p.m. Singapore time. The contract yesterday declined 0.3 percent to $98.48 a barrel, the lowest since Jan. 20. Prices slid 0.4 percent in January, falling for a second month.

Brent oil for March settlement gained 56 cents to $111.54 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate futures traded at $12.51, compared with a record spread of $27.88 on Oct. 14.

The European Union said last month it will ban Iranian oil imports starting in July and freeze the assets of the country’s central bank as part of sanctions against the Persian Gulf nation’s nuclear program. Iran’s Foreign minister Ali Akbar Salehi said this week that the International Atomic Energy Agency team would be visiting some of the country’s nuclear sites and could extend its stay if it needed to.

/... http://www.bloomberg.com/news/2012-01-31/oil-futures-decline-for-third-day-as-consumer-confidence-equities-drop.html