Oil extends gains before US data

Oil prices rose Friday on bargain-buying but analysts warned of fresh selling pressure as the United States prepared to release key manufacturing data later in the day.

US benchmark West Texas Intermediate (WTI) for delivery in December added 17 cents to $45.55 per barrel compared with Thursday’s close.

Brent North Sea crude for December delivery was up 36 cents at $48.44 per barrel in London midday deals.

“We’re still seeing some bargain-hunting,” said Daniel Ang, an investment analyst with Phillip Futures in Singapore.

Ang said, however, he expected the US purchasing managers index on manufacturing activity — a closely watched measure of the health of the world’s biggest economy — to show weakness.

“The data will likely put a more bearish tone on oil prices,” he told AFP.

The market had also risen Thursday after they were hammered Wednesday by data showing US crude stockpiles had increased much more than expected last week, compounding worries about a global supply glut.

Prices have been depressed for more than a year by global oversupply and a slowdown in major economies, particularly China, the world’s top energy consumer.

Eurozone economic activity meanwhile accelerated in October, a key business survey showed on Friday, in one of the best performances in four years which included a notable improvement in employment.

Data monitoring company Markit said its closely watched composite Purchasing Managers Index rose to 54 points compared with 53.6 points in September, well above the 50-point boom-or-bust line.