SINGAPORE: Brent crude futures climbed above $110 a barrel for the first time since early April on Friday, as upbeat economic data raised the prospects for better global oil demand amid supply disruptions in Africa and Iraq.
US manufacturing grew in July at its fastest pace in two years, while a China industrial index beat expectations this week. European factories also snapped two years of output declines, suggesting a euro zone recession may be near its end.
A commitment to easy monetary policy by European central banks and the Federal Reserve also boosted oil prices. [
Brent crude oil futures had gained 42 cents to $109.96 a barrel by 0411 GMT, after earlier hitting $110.09, its highest since April 3. Brent is track to rise 2.6 percent on the week after two weeks of losses.
US crude oil futures rose 68 cents to $108.57, heading for a 3.7 percent increase for the week.
"A lot of people are expecting the quantitative easing to continue for longer than expected, so money is still going into the oil markets," said Ken Hasegawa, a commodity sales manager at Newedge Japan.
But with global inventories adequate, he added, oil prices are unlikely to remain strong.
The European Central Bank and the Bank of England on Thursday left their interest rates at record lows, a day after the Federal Reserve said the US economy still needed its support and made no mention of changes to its stimulus measures.
Any pullback on the Fed's easy money policies could boost the dollar and drag on assets denominated in the currency.
Investors are waiting for a US employment report due later in the day that is expected to show the jobless rate near its lowest level in more than four years, which could strengthen demand from the world's top oil consumer.
Data on Thursday showed US factory activity hitting a two-year high in July and first-time applications for jobless benefits hit a 5-1/2-year low last week.
Brent's premium over West Texas Intermediate narrowed to $1.40 a barrel as the positive data and the Fed comments pushed up the US crude oil prices.
"A lot of money has now seemed to have come to the US crude market and I suspect some short covering is happening," said Hasegawa.
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