Published December 02, 2012
BANGKOK – The price of oil rose above $89 a barrel Monday as investors focused on signs that China's economy may be picking up after a prolonged slowdown.
Benchmark crude for January delivery was up 30 cents to $89.21 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 84 cents to close at $88.91 in New York on Friday.
Surveys by the state-sanctioned China Federation of Logistics & Purchasing and HSBC Corp. showed China's manufacturing is expanding.
Signs of recovery in a major economy typically herald an increase in energy consumption and therefore push oil prices higher.
In Europe, German lawmakers approved further aid to Greece on Friday, raising hopes that Europe will continue to slowly heal from its debt crisis. Increased European economic activity could also push up global oil demand.
Oil had its first monthly gain in four months in November, but is still trading below the 2012 average of $94.65 per barrel.
In London, Brent crude was up 41 cents at $111.64.
In other energy futures trading on the New York Mercantile Exchange:
— Heating oil rose 1.4 cents to $3.075 per gallon.
— Wholesale gasoline rose 1.4 cents to $2.744 per gallon.
— Natural gas rose 7.5 cents to $3.636 per 1,000 cubic feet
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