SINGAPORE: Brent crude held above $112 a barrel on Thursday, supported by upbeat manufacturing data from China that could mean higher fuel demand to come in the world's second largest oil consumer.
Growth in China's giant factory sector accelerated to a two-year high in January, HSBC's preliminary private survey showed in an encouraging sign for the country's economic rebound.
"We're expecting second quarter to be better than the first in terms of GDP growth in China," ANZ commodities analyst Natalie Rampono said. "Given that the data was better than expected, the markets could move higher in the rest of the day."
Brent crude for March delivery edged down 22 cents to $112.58 a barrel by 0333 GMT. US crude was at $95.38, up 15 cents, rebounding from a 1.5 percent fall on Wednesday on worries that inventories at contract delivery point Cushing, Oklahoma, may swell further.
China's oil demand could grow by more than 7 percent to 11.3 million barrels per day (bpd) this year, Rampono said.
The world economy should perform slightly better this year, growing by 3.3 percent, as recovering growth in Asia will gradually overpower the political and economic malaise in the West, Reuters polls of more than 600 economists worldwide showed.
Fears of a damaging default by the United States were temporarily alleviated after a plan was passed on Wednesday to allow the federal government to keep borrowing money through mid-May. But Asian equities opened lower on Thursday, weighed down by disappointing results from Apple Inc.
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