Crude oil futures registered slim gains on Monday as investors cheered better than expected US manufacturing data.

The Institute for Supply Management's manufacturing purchasing index increased to 51.5 in September from 49.6 the month before. Not only did the gauge of manufacturing activity not contract again, the reading came in above 50, which signals expansion. Economists had expected the index to rise to 49.7 in September.

The ISM report helped crude for November delivery gain 29 cents or 0.3% at $92.48 a barrel on the New York Mercantile Exchange.

Oil prices were also supported by gains on Wall Street despite a weak performance in Asia and Europe. Weak manufacturing data from Japan and China hurt confidence about the global outlook.

Also of note was Federal Reserve Chairman Ben Bernanke's defence of the latest round of monetary easing after recent criticism. Other Fed members have said the wrong medicine is being applied to America's economy while far too many people remain out of work.

On the ICE futures exchange Brent crude fell 20 cents to $112.19 a barrel.

Among precious metals gold regained its allure on Monday, climbing its highest close since late February, after the encouraging factory data.

Gold futures for December delivery advanced $9.40 to settle at $1,783.30 an ounce on the Comex division of the New York Mercantile Exchange.

Silver for December delivery rose 38 cents to $34.95 an ounce. Platinum for January climbed $16.50 to $1,685.80 an ounce and palladium for December delivery gained $4.80 to $645.60 an ounce.


CJ

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