WTI Futures Gain after ISM Manufacturing PMI Hits 16Mos Hi
8/03 10:42 AM
WTI Futures Gain after ISM Manufacturing PMI Hits 16Mos High WASHINGTON, D.C. (DTN) -- Boosted by a stronger-than-expected reading on U.S. manufacturing activity in July, nearby delivery New York Mercantile Exchange West Texas Intermediate crude futures jumped above $41 bbl and product futures rallied as the data indicates the economy shows signs of slow but steady recovery. Institute for Supply Management's Manufacturing Purchasing Managers Index advanced 1.6 points from the previous month to 54.2 in July, the highest reading since March 2019 and above market expectations of 53.6. Further details of the report show new orders rose sharply, 61.5 versus 56.4 in June, as new export sales returned to growth, while employment contracted at a softer pace, 44.3 versus 42.1. Among the six biggest industry sectors, food, beverage & tobacco products remained the best-performing industry sector, followed by chemical products, computer & electronic products and petroleum & coal products. Furthermore, domestic steel production rose 1.1% from the previous week to 1,320,000 net tons as utilization capacity rate jumped to near 60%, according to American Iron and Steel Institute. During the comparable week last year, steel production was 1,847,000 net tons and capability utilization then was 79.4%. Near 11:00 AM ET, NYMEX September ULSD futures traded 1.53cts higher at $1.2393 gallon, narrowing its premium to front-month RBOB futures to 0.4cts. ULSD futures have been rising relative to RBOB for the last week. Liubov Georges, 1.646.359.4088, liubov.georges@dtn, http://www.dtn.com. (c) Copyright 2020 DTN, LLC. All rights reserved.
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