On the first trading day of the second quarter of 2012, the energy commodity increased due to a purchasing managers' index revealing its top value in one year last month. Crude oil futures achieved quarterly gains of 4.2 percent and finished strongly when U.S. President Barack Obama said on Friday that global supplies of the energy commodity are strong enough to sustain sanctions against oil-rich Iran.
"The firmer tone relates to the official Chinese PMI reading, and that reverses the negative sentiment we've seen around China," chief marketing strategist Michael McCarthy with CMC Markets Asia Pacific in Sydney told Bloomberg. "That speaks well to demand. The Middle East seems to be quietly boiling away without any signs at this stage of a blow-up."
At 11:15 a.m. on Monday, crude oil futures increased 1.03 percent, a $1.27 lift to $124.15 per barrel.
Reuters reports the energy commodity benefited from economic data indicating the manufacturing sector in the U.S. gained last month.
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