Oil rises to five-month high on firmer China data, prospect of fresh supply curbs

Oil prices climbed to nearly five-month highs on Tuesday, supported by firm Chinese economic data that eased demand concerns, the possibility of more sanctions against Iran and further Venezuelan supply disruptions.

Brent crude rose 15 cents, or 0.2 percent, to $69.16 a barrel by 0636 GMT, having earlier touched $69.50, the highest since mid-November.

U.S. West Texas Intermediate (WTI) futures rose 14 cents, or 0.2 percent, to $61.73 a barrel, after earlier rising above $62 for the first time since early November.

Positive data from the world’s biggest economies, the United States and China bolstered prices, with China’s manufacturing sector unexpectedly returning to growth for the first time in four months during March, figures showed on Monday.

“China’s PMI number was the most significant monthly increase since 2012, which should ease concerns around a potential threat to oil demand,” said Stephen Innes, head of trading and market strategy at SPI Asset Management.

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) expanded at the strongest pace in eight months in March, the figures showed.