LONDON: Brent crude futures rose towards $110 a barrel on Monday as data showing China's factory activity expanded at its quickest pace in five months in May revived hopes of healthy demand growth for the world's second-biggest oil consumer.
The strong data reinforces views that China is regaining momentum in the second quarter and adds to a recent string of positive indicators from the United States that suggests an improvement in the global economic outlook.
Brent gained 25 cents to $109.66 a barrel by 0800 GMT, after settling 56 cents down on Friday and ending the week 1 percent lower. US oil increased 43 cents to $103.14 a barrel, after ending the week 1.6 percent lower.
"Prices are up on the back of buoyant Chinese manufacturing data," JBC analysts said in a note to clients.
China's official Purchasing Managers' Index rose to 50.8 in May from April's 50.4, the National Bureau of Statistics said on Sunday, beating market expectations of 50.6.
"The data is giving an indication that the Chinese economy is stabilising," said Victor Shum, vice-president of consultancy IHS Energy Insight.
"Oil has been trading within a range and I expect that to continue as summer demand for oil is going to be stronger."
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