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NYMEX crude up sharply in Asia on Saudi King Abdullah's death

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Investing.com -

Investing.com - Crude oil prices surged in Asia on Friday after the death of Saudi Arabia's King Abdullah, a key U.S. ally on diplomacy and oil policies that raised questions about whether the succession plan would keep the bonds tight, and ahead of a closely-watched survey of China's manufacturing sector expected to set the tone.

Ahead is the the HSBC China flash manufacturing PMI, which is closely tracked by the market, could be a key event for risk sentiment.

This is due at 0945 local time (0145 GMT). There's not much chance of a significant improvement in the headline reading over December's fall to a seven-month low of 49.6.

On the New York Mercantile Exchange, crude oil for delivery in February jumped 2.23% to trade at $47.35 a barrel.

Overnight, West Texas Intermediate oil futures added to losses on Thursday, after data showed that oil supplies in the U.S. rose more than expected last week, exacerbating fears over a glut in supplies.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 10.1 million barrels in the week ended January 16, compared to expectations for an increase of 2.7 million barrels.

Total U.S. crude oil inventories stood at 397.9 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 0.6 million barrels, below expectations for a gain of 1.3 million, while distillate stockpiles decreased by 3.3 million barrels.

The data came out one day later than usual due to Monday's Martin Luther King, Jr. holiday in the U.S.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery shed 66 cents, or 1.34%, to trade at $48.38 a barrel on Thursday.

Earlier in the day, the European Central Bank announced that it would launch a €60 billion monthly bond buying program that would start in March and last until September 2016, in a bid to stave off the threat of deflation in the euro area and boost growth.

The QE announcement pressured the euro and sent the dollar higher, weighing on dollar-denominated commodities.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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