Oil climbs above $84 to reach 17-month high

Oil prices climbed above the $84 mark today to hit a 17-month high, ahead of the Easter holiday.

New York’s main contract, light sweet crude for May delivery, added 70 cents to $84.46 a barrel, while London’s Brent North Sea crude for May climbed 74 cents to $83.44 per barrel.

According to analysts, the rise was attributed to strong manufacturing data in the euro zone and China – the latter being the world’s second largest oil consuming nation after the US.

Chinese manufacturing rose in March, according to Government and HSBC surveys with the HSBC China Manufacturing PMI rising from 55.8 in February to 57 in March. A reading above 50 indicates growth within the sector.

A separate official PMI published by the China Federation of Logistics and Purchasing (CFLP) rose to 55.1 after dipping to 52 in February.

Meanwhile, manufacturing in the euro zone exceeded forecasts in March, reaching a 40-month high, according to a research group Markit.

Today’s rise in oil prices extends two-day gains after the International Energy Forum meeting pledged to prevent a repeat of the oil price volatility experienced during the economic downturn.

“With regard to energy market volatility, energy markets should be as transparent as possible,” the International Energy Forum said at the end of a two-day meeting in Cancun, Mexico.