Eurozone Manufacturing Contracts
September 4th, 2019
Crude oil and refined fuel product prices closed significantly lower yesterday due to poor manufacturing reports in the US and Europe, both US and China having new trade tariffs kicking in September 1, and the US dollar index back up to a 2-year high this past Friday.
Data was released showing that the Eurozone manufacturing contracted in August for the 7th straight month this year. In addition the US ISM manufacturing data released yesterday showed contraction for the first time in 3 years. Poor manufacturing numbers are generally seen as leading to lower fuel demand.
China’s President Ki Jinping, said the country is entering a period where it faces “concentrated risks”, economically, politically, and diplomatically and added that the country must be able to fight and win against those who challenge the country’s bottom line.
Iran’s President, Hassan Rouhani, said Iran will always have a negative answer to any offer of bilateral talks with the US.
France proposed offering Iran credit line worth about $15 billion until the end of the year in return for Iran coming fully back into compliance with is 2015 nuclear deal.
Venezuela’s crude oil exports fell in August to the lowest level thus far in 2019, following tougher US sanctions according to some data sources.
US manufactures reported the most widespread downturn in activity last month since January 2016, with the ISM index falling to 49.1 from 51.2 in July and 6.3 a year earlier. A number below 50 indicates a shrinking manufacturing sector.
The Russian Energy Minister, Alexander Novak, is planning to go to Saudi Arabia ahead of the scheduled October visit of Vladimir Putin. Russia has given the indication that they see no changes to the OPEC+ agreement despite the changes Saudi Arabia has made to their oil leadership.
The API will be out today one day late due to the holiday on Monday.