China's Manufacturing Sector PMI Signals Continued Growth, Supporting Oil Prices

Forex - The manufacturing PMI data released by the National Bureau of Statistics of China, remaining above the 50-point level, continues to indicate growth, leading to an increase in oil prices.

Oil prices rose following data showing that manufacturing activities in China expanded in December; however, oil is on track for a second consecutive year of a lower close due to demand concerns in the largest consuming countries.

Brent crude oil is trading at $74.33, up 34 cents or 0.45%. U.S. West Texas Intermediate crude gained 38 cents or 0.54%, trading at $71.37 per barrel.

While Brent has declined by 3.2% over the year, West Texas Intermediate has seen a decrease of 0.6%.

Amid a weak long-term demand outlook putting pressure on prices, short-term support may be found from the expected decrease of approximately 3 million barrels in U.S. crude oil stocks last week.