Oil higher in Asian trade, NY crude above 83 dollars

Tuesday, 2 November 2010 23:19 - - {{hitsCtrl.values.hits}}

SINGAPORE, (AFP) - Oil was higher in Asian trade Tuesday on the back of upbeat industrial data from the US and China, the world’s major energy consumers, analysts said.

Comments from Saudi Oil Minister Ali al-Nuaimi that current oil prices at above 80 dollars a barrel were within a “very comfortable zone” were also supportive of market sentiment, they said.

New York’s main contract, light sweet crude for December delivery, rose 41 cents to 83.36 dollars a barrel.

Brent North Sea crude for December delivery was up 30 cents at 84.92 dollars.

“Comments by the Saudi oil minister and better-than-expected manufacturing data from China and the US boosted oil prices,” said Ong Yi Ling, an investment analyst with Phillip Futures in Singapore.

In the United States, the world’s biggest oil consumer, a key industrial survey showed manufacturing unexpectedly picked up steam in October, raising hopes for a strong final quarter that could underpin the flagging US economic recovery.

Data showing that Chinese manufacturing activity hit a six-month high in October, a sign of recovery in the world’s second-biggest economy and top energy consumer, also boosted sentiment. The Saudi oil minister said Monday in Singapore current oil prices at above 80 dollars a barrel were within a “very comfortable zone” and beneficial to producers, consumers and companies alike.

“Producers, consumers and companies are all happy with this price,” said al-Nuaimi, adding however that the crude market was “a little bit oversupplied”.

Saudi Arabia is the leading producer and exporter of the Organisation of the Petroleum Exporting Countries, which pumps 40 percent of the world’s oil.