Crude Oil Gains on Better than Expected Manufacturing Data
Crude oil futures moved in bullish rally on Tuesday and reached their highest in last five weeks mainly backed by positive US manufacturing data. As per the latest data of the Institute of Supply Management the manufacturing index gained to 54.8 percent in month of April as compared to 53.4 percent in March. Analysts were expecting the ISM’s index to decline to 53.3 percent.
Crude oil futures contract for June delivery surged 1.2 percent or $1.29 to settle at $106.16 per barrel on the New York Mercantile Exchange. This was the crude oil’s highest since March 27th. In its earlier session oil remained under pressure in reaction to euro zone’s debt worries and lower manufacturing activity data in Chicago.
However today, other positive ISM’s index in US, China also came up with better than expected manufacturing activity. China’s official Purchasing Managers’ Index surged to 53.3 in April as compared to 53.1 in the month of March.
Among other energy commodities, gasoline futures contract fell 0.9 percent or $0.03 to settle at $3.10 per gallon while heating oil futures for the same month delivery slipped 0.2 percent or $0.01 to settle at $3.18 per gallon.
Natural gas futures for June delivery gained 3.8 percent or $0.09 to settle at $2.37 per million British thermal units.