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Oil prices rise on upbeat China data

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(Globalpost/GlobalPost)

Oil prices rose on Friday after a run of losses and as China posted upbeat industrial output data that bolstered the outlook for the world's top energy consumer.

The data came as the International Energy Agency (IEA) trimmed its outlook for world oil demand growth over the next 18 months and highlighted threats to the dominance of producer cartel OPEC.

Brent North Sea crude for delivery in September climbed 75 cents to stand at $107.43 a barrel in London midday deals.

New York's main contract, West Texas Intermediate for September, jumped $1.15 to $104.55 a barrel.

China's industrial production growth accelerated in July to a five-month high of 9.7 percent year-on-year, the government announced Friday.

July's factory output figure, higher than June's 8.9 percent, exceeded analyst expectations.

The country also posted lower-than-expected inflation, which held steady at 2.7 percent in July, marginally below market expectations of 2.8 percent, potentially giving the government more room to stimulate the economy.

The IEA said that new data on the difficulty the global economy is having in picking up speed meant that demand for oil would grow by slightly less than it had foreseen in July.

But the critical underlying factors are the rise of North American shale energy and the threat this poses to OPEC, the IEA said, referring to debate over whether the Organization of Petroleum Exporting Countries may have had its day.

The agency said that it was trimming its forecast for growth of global oil demand this year by 30,000 barrels per day to 895,000 barrels per day because the International Monetary Fund had lowered its forecast for growth of the global economy from 3.3 percent to 3.1 percent.

Oil prices have fallen over the week, hit by improving global supplies and as amid weakness to equity markets caused by concerns that the Federal Reserve could soon begin to withdraw its massive stimulus programme.

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http://www.globalpost.com/dispatch/news/afp/130809/oil-prices-rise-upbeat-china-data