Brent rises above $108

An investor points at the stock price monitor at a private security company Tuesday Oct. 7, 2008 in Shanghai, China. Chinese shares have fallen again as worries about slowing economic growth hurt energy and industrial metals, while lower oil prices help real estate and airline stocks. The benchmark Shanghai Composite Index shed 0.73 percent, or 15.9 point, to close at 2157.84 on Tuesday. (AP Photo/Eugene Hoshiko)

Heading upwards: oil prices rose on Tuesday on positive data from China and rising tensions between Iran and the West

AP PHOTO/EUGENE HOSHIKO

By News Wires

 03 January 2012 05:05 GMT

Brent crude rose to above $108 a barrel on Tuesday as China's manufacturing activity expanded slightly, lifting hopes of higher oil demand, and as rising tensions between Iran and the West created supply disruption fears.

Crude had been one of the best performers among commodities in 2011, with Brent posting an annual gain of 13% to a record average of nearly $111 a barrel as unrest in North Africa and the Middle East disrupted supply.

Brent crude climbed $1.12 to $108.50 a barrel on the first day of trading for 2012. US crude futures rose $1.43 to $100.26 a barrel.

"Over the next few months, it will be a balance of economic issues in Europe and the US versus bullish geopolitical factors and the reality of economic growth…

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