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
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 &
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
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
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