Black gold rides on Chinese figures
The prices of oil rose along with the increases in China's economic indicators on Wednesday.
A half percent increase brought the oil to $US72 a barrel. The rebound on Wednesday could be attributed to the favorable figures in China's manufacturing industry.
China's purchasing managers' index (PMI) went up from July's 51.2 to 51.7 in August. The figures mark the 18th straight month it has stood above the threshold of 50.
According to commodities analyst Ben Westmore of the National Australia Bank, “Commodity markets generally seem to have been worrying less about China and more focused on the United States recently, but China is obviously very important.”
China follows after the United States in the ranking of economies worldwide. Westmore places confidence in the second largest economy in the world. “The underlying strength in that economy is still sound, such that commodity demand and demand for oil will continue to be strong in the next couple of years,” he claims.
In August, oil prices slid more than $US7, almost 9 percent. The lowest price tag for 2010 so far is May 20's $US64.24. The highest cost per barrel this year is the May 3 price of $US87.15.
Westmore considers the increase in prices to be “quite gradual” because “Consumer spending remains weak in the U.S.”