SINGAPORE: Brent crude rose toward $112 a barrel on Thursday, extending gains for a third day on persistent worries over supply from Iran, while upbeat global manufacturing data also boosted appetite for riskier assets.
Factory activity rose in the United States, China and Germany -- the world's three manufacturing superpowers -- in January, raising hopes the global economy will not be dragged down by the euro zone debt crisis and pushing up Asian shares as well as the euro.
ICE Brent crude for March rose 33 cents to $111.89 a barrel by 0603 GMT and US crude was at $97.51, down 10 cents.
"We've got a bullish bias and the Chinese PMI data was supportive of that," said Jonathan Barratt, chief executive of Barratt's Bulletin.
"The world was expecting bigger fallout in China and India from the euro zone crisis. It's still a big concern, but the market wants to focus on the good story."
Asian shares were up and the euro rose against the greenback on easing concerns over global growth. A weaker greenback makes dollar-denominated oil more affordable for holders of other currencies.
Yet even as China defied expectations its factory output would contract in January and German output improved for the first time in four months, data released on Wednesday showed new signs of the threats from Europe's troubles.
New export orders fell in China, and manufacturing in France and several other European nations contracted. Investors are now eyeing employment data due from the United States for clues to the country's economic health.
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