SINGAPORE: Brent crude edged above $110 a barrel on Monday after Chinese industrial activity clung to an 18-month high last month and amid continued supply disruptions in Libya.
Oil prices were boosted by data showing manufacturing growth in China, the world's biggest crude importer, held at an 18-month high in November on firm domestic and foreign demand, despite worries the economy is facing a modest slowdown.
"Risk assets came back on with the positive numbers out of China," said Ben Le Brun, a market analyst at OptionsXpress in Sydney.
"This could reverberate for a couple of days to support oil prices."
Brent crude for January delivery had risen 53 cents to $110.22 a barrel at 0256 GMT, after finishing down $1.17 in the previous session. US crude was up 47 cents at $93.19 a barrel, after settling up 42 cents on Friday.
China's official Purchasing Managers' Index (PMI) stood at 51.4 in November, unchanged from October and ahead of market forecasts for a reading of 51.1.
"I think there is not too much to worry about on the demand side. It's the supply that is still very much uncertain," said Le Brun.
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