Oil Tops $54 With Hints Of New Demand From China

DIRK LAMMERS

SIOUX FALLS, South Dakota (AP) — Signs of increasing energy demand in China, the world's second largest consumer, pushed oil above $54 a barrel Monday, but concerns over the state of the economic recovery and the spread of the swine flu continue to hold prices in check.

Benchmark crude for June delivery gained $1.27 to settle at $54.47 a barrel on the New York Mercantile Exchange after settling at $53.20 on Friday.

In the summer of 2008, surging demand from countries like China and India affected almost everyone's pocketbook, with oil and gasoline prices skyrocketing.

"There's nothing more bullish for oil than the Chinese manufacturing sector expanding," said Phil Flynn, an analyst at Alaron Trading Corp.

China's monthly survey of purchasing managers for more than 700 manufacturers — a key indicator — rose to 53.5 in April from March's 52.4, the government-sanctioned China Federation of Logistics and Purchasing reported Friday.

Still, for most consumers, it's a completely different energy landscape heading into this summer.