U.S. Manufacturing Rebounds
August 4, 2020
The energy markets closed higher yesterday on good manufacturing data from the US, Europe, and Asia. It also was supported by the falling dollar which is near a two year low. Keeping a lid on prices is the increased production from OPEC+ and the rising cases of COVID-19.
US manufacturing jumped to its highest level in 1.5 years in July as orders increased despite rising COVID-19 cases. The ISM manufacturing index came in at a reading of 54.2 for July versus an expected reading of 53.5.
Genscape reported that crude oil stocks held in Cushing, Oklahoma in the week ending Friday July 31st increased by 576,630 barrels.
Marathon Petroleum, a US independent refiner, agreed to sell its 3,900-store Speedway retail network to 7-Eleven’s parent company for $21 billion.
More US Atlantic coast ports are closing or preparing to close as tropical storm Isaias travels north from the coast of South Carolina.
Russian oil and gas condensate output increased to 9.8 million bpd on August 1-2 from 9.37 million bpd in July as the country eases production curbs under and OPEC+ deal.
The current sentiment seems to be that inventories this week could see another large draw in crude stocks. The API will come out later today for the first look and then the DOE number tomorrow morning. Estimates are from 4 million to 12 million barrels.