Oil extends gains above $78 in Asian trade
Singapore: Oil rose further in Asian trade
on Tuesday, underpinned by a better-than-expected expansion in the
US manufacturing sector, analysts said.
A weak greenback, which makes dollar-priced crude
cheaper for holders of stronger currencies, was also an extra
factor behind the higher futures, they added.
New York's main contract, light sweet crude for
December delivery, advanced 26 cents to USD 78.39 a barrel.
Brent North Sea crude for December delivery gained 19
cents to USD 76.74.
The two contracts closed firmer Monday, buoyed in part
by the US manufacturing expansion.
The Institute of Supply Management said on Monday that its
factory index, also known as the purchasing managers index,
grew for a third consecutive month in October with a reading
of 55.7 percent.
It was stronger than market expectations for a reading
of 53 percent and the highest rate of growth since April
2006. Any number above 50 indicates growth.
"The reading marks the highest point in three and a
half years," said Dariusz Kowalczyk, chief investment
strategist with SJS Markets securities firm.
Among the sub-indexes in the survey, the employment
index was 53.1 percent, marking a sharp turnaround from last
month's 46.2 per cent and suggesting that factories are
starting to add jobs.
Bureau Report