The growth of Chinese manufacturing and anticipations of the Federal Reserve's implementation of quantitative easing to rouse the U.S. economy has pushed the price of crude oil to a two-week high, Bloomberg reports.
The Chinese Federation of Logistics and Purchasing said the purchasing mangers' index indicated an October increase to 54.7 while an industry report indicated U.S. factory output widened more than expected last month, just as the Federal Open Market Committee is expected to institute an asset-buying program after meetings tomorrow and Wednesday.
"The combination of the strong Chinese data and expectations for quantitative easing this week is giving traders good reasons to be long," Phil Flynn, vice president of research at PFGBest in Chicago, told Bloomberg.
Crude oil for December delivery reached $82.95 a barrel on the New York Mercantile Exchange, marking its highest settlement since October 18, an increase of 7.7 percent since the same time period of 2009.
China last year displaced the United States as the world's largest energy user and it recently passed Japan as the world's second-largest economy as measured by gross domestic product.
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