Oil price rise on US factory data

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The price of oil has risen more than $1 a barrel after strong manufacturing data from the US increased optimism about the global economic recovery.

US light crude rose $1.13 a barrel to end Monday trading at $78.13, while London Brent added $1.35 to $76.55.

The gains came after a report said US manufacturing output rose again in October for a third successive month.

Analysts said oil prices were also lifted by a further rise in US housing sales in September.

'Higher demand'

"A string of economic data led by higher US manufacturing numbers gave the oil markets a shot in the arm," said Phil Flynn, an analyst at PFGBest Research in Chicago.

"Oil futures are still trading in the recent range here, but the market is sensing that, if manufacturing continues to be strong, that will translate into higher demand for oil."

Oil prices hit a record $147 a barrel in July of last year, before falling back to below $33 in December.

They have since slowly recovered.