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Oil Prices Rise On Improvement In US Manufacturing

Mark Wilson/Getty Images

Oil prices are climbing as April’s manufacturing rate expanded at the fastest pace in 10 months, signaling more demand for energy products.

Benchmark oil rose $1.22 Tuesday to $106.09 per barrel in New York. Brent crude increased by 44 cents to $119.91 in London.

A purchasing managers’ trade group says U.S. manufacturing benefited from new orders and more production. A measure of employment also increased.

In addition, Chinese manufacturing expanded for a fifth straight month.

Concerns remain about Europe’s struggle with a massive government debt crisis that is hurting the region’s economy.

At the pump, AAA says the national average for gas is $3.809 per gallon. That’s down about 1 cent overnight and nearly 12 cents lower than a month ago.

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