Brent, WTI crude trade above $54 per barrel

June contracts for West Texas Intermediate crude added $1.15 near the end of floor trade on the New York Mercantile Exchange Monday to trade at $54.35 per barrel after data released late last week showing that manufacturing activity in China was up in April led to hopes that oil demand will recover in the Asian nation.

The gains came despite some lingering fears that demand for gasoline and jet fuel will decline if travelers put off trips over concern for coming in contact with the H1N1 flu virus.

At last report, prices for Brent crude had added $1.53 to $54.38 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade, Nymex June gasoline futures had added 5 cents to $1.57 per gallon while June heating oil was up 3 cents to $1.42 per gallon and June natural gas had gained 18 cents to $3.73 per million British thermal units.

Platinum and palladium prices were also higher on the news about the expansion of manufacturing activity in China.

July platinum added $25.60 to $1,122 per troy ounce in New York trade while June palladium, which like platinum is used to make pollution control devices for motor vehicles as well as in jewelry, was up $8.40 to $222.30 per troy ounce.

June gold was $14.30 higher to $902.50 per troy ounce while July silver gained 61 cents to $13.11 per troy ounce.

Among base metals, July copper was up 4 cents to $2.14 per pound in New York.

Grains prices were mixed on the Chicago Board of Trade.

CBOT May soybeans added 13 cents to $11.15 per bushel, but May corn was down 8 cents to $3.98 per bushel and May wheat dropped 18 cents to $5.38 per bushel.

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