Crude oil prices traded slightly higher in the early morning of the European session on Tuesday, after the release of an upbeat manufacturing data from both the US and China lifted prices.
West Texas Intermediate (WTI) crude futures rose 0.28% higher at $94.09 per barrel at the time of writing, while futures for the European benchmark Brent climbed 0.03% higher and trading at $111.50 per barrel.
The manufacturing sector in the US for November climbed to its highest since April 2011, according to the Purchasing Managers’ Index (PMI) survey posted by the Institute for Supply Management (ISM) on Monday. Figures for the manufacturing PMI went up to 57.3, up from the reading of 56.4 seen in October.
The employment index rose by 3.3 percentage points to 56.5%, climbing from the previous month’s reading of 53.2% and marking the highest reading since April 2012. The new orders index edged up by 3 percentage points to 63.6% in November, while the production index advanced by 2 percentage points to 62.8%.
The Chinese HSBC Manufacturing PMI came in at 50.8 in the previous month, exceeding analysts’ forecast of 50.5. China’s non-manufacturing PMI surpassed analysts’ estimates of 55.4 and came in at 56.0.
The second forecast for the third quarter gross domestic product (GDP) for the US is expected to be released on Thursday, with estimates of a 3.1% increase from 2.8% in the previous quarter.
Employment data and a strong GDP are expected to be released from the US, which would possibly suppress oil prices.
Analysts are expecting the Federal Reserve to begin to scale-back on its bond-purchasing program sooner if an encouraging employment data is released.
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