Price of crude oil rose on Friday following indications of supply disruptions in the Middle East and suggestions from Chins that the Asian economic powerhouse might increase demand for fuel.
Data showed that the Chinese factory output rose at its fastest pace in July since the beginning of the year. Import of crude oil imports rose in China but the implied oil demand fell moderately in the country. It is believed that the world's second largest economy is reviving growth after months of slowdown.
The data showed that Brent crude rose from its lowest level in a month as indications of higher demand were recorded in the country. Experts have said that the higher demand from China and supply disruption in Libya might help push up the price of crude oil in the international market. There are concerns over violence and threatened Al-Qaeda attacks in the Middle East that might affect fuel supply chains in the region.
The US crude futures for September delivery increased $2.57 to close at $105.97 while rent crude oil increased more than a dollar to trade above $108. The increase comes after five straight sessions of fall in the market that began a week ago.
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