Oil surges on Mideast tensions, China data

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Oil surges on Mideast tensions, China data

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Oil prices went up in Asian trade on Tuesday.

03 January,2012 09:54 am

Oil rose in Asian trade Tuesday, underpinned by positive economic data out of China and geopolitical tensions in the Middle East, analysts said.New Yorks main contract light sweet crude for February delivery gained $1.45 to $100.28 and Brent North Sea crude for the same period put on $1.02 to $108.40.Prices have moved up as the market reacts to the expansion in manufacturing activity in China, said Victor Shum, senior principal at Purvin and Gertz international energy consultants.Geopolitical tensions over Iran has also supported the market, he told AFP.Official data released Sunday showed Chinas manufacturing activity rebounded in December helped by holiday shopping.The purchasing managers index (PMI) reached 50.3 in December, the China Federation of Logistics and Purchasing said. A reading above 50 indicates the sector is expanding.China is the worlds largest consumer of energy and as the number two economy globally has a huge impact on crude prices.Traders on Tuesday were closely monitoring the situation in the Strait of Hormuz after Iran tested missiles near the strategic channel Monday.The missile tests underlined Irans threats to close the vital oil-transit waterway through which 20 percent of the worlds oil flows through.The US has warned it will not tolerate a closure of the strategic channel.