A private sector survey showed China's factory activity expanded at the fastest pace in five months in November, boosting Chinese business optimism just as US President-elect Donald Trump ramps up his trade threats.Oil prices rose more than 1% on Monday, supported by strong factory activity in China and escalating tensions in the Middle East, where Israel resumed attacks on Lebanon despite a ceasefire deal.
Brent crude futures climbed 91 cents, or 1.27%, to USD72.75 a barrel by 1357 GMT while US West Texas Intermediate crude rose 97 cents, or 1.43%, to USD 68.97.
"The better than expected economic data from China is supporting crude prices, as so far oil prices have been suffering from Chinese demand concerns," said UBS analyst Giovanni Staunovo.
Stimulus measures are starting to finally affect economic activity, which should help to boost Chinese oil demand over the coming months, he added.
A private sector survey showed China's factory activity expanded at the fastest pace in five months in November, boosting Chinese business optimism just as US President-elect Donald Trump ramps up his trade threats.
Traders are also watching developments in Syria, weighing whether recent escalation could widen tensions across the Middle East, said IG market strategist Yeap Jun Rong.
