Energy

Crude advances after US, China see manufacturing boost

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Crude futures jumped by more than $1 a barrel on Monday in reaction to strong manufacturing data from both China and the United States and extended gains on rumors of some Russian cancellations.

Volume surged and prices rose, with several market players citing rumors that cargoes of Russian Urals crude had been canceled in December.

Crude had been trading higher following data showing the U.S. manufacturing sector expanded last month at its fastest pace in 2-1/2 years, outstripping forecasts, and the employment picture also improved. In China, the official Purchasing Managers' Index showed manufacturing growth at an 18-month high in November due to robust domestic and foreign demand.

A similar indicator for Britain and Germany also showed a pick-up in manufacturing activity.

Brent crude for January delivery soared by more than 1 percent to above $111 a barrel, its highest in nearly 3 months. U.S. crude, or West Texas Intermediate, rose by $1.10 to settle at $93.82 a barrel, extending Friday's gains.

--By Reuters

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