By Geoffrey Smith
Investing.com – prices soared on Monday after a weakening in a closely-watched U.S. business survey banished any lingering worries that monetary policy will soon start to tighten.
The Institute of Supply Management’s manufacturing survey for April showed activity expanding at a rapid rate, although its main index weakened from a 36-year high in March, a level that had provoked some fears of overheating.
By 10:55 AM ET (1455 GMT), U.S. crude futures were up 1.6% at $64.59 a barrel while the international marker rose 1.5% to $67.75 a barrel.
Underlying demand appears undimmed however, especially in the U.S., where airports reported another weekend of post-pandemic highs for passengers. The overall level of passengers was still some 35% off pre-pandemic levels, however.
At the same time, U.S. gasoline demand rose 3% last week to the second-highest level since the pandemic started, with Sunday demand levels nearly 5% over the four-week average, according to data from GasBuddy.
U.S. rose 1.8% to a new seven-week high of $2.1169 gallon.
Earlier, data from the Energy Information Administration showed that U.S. oil supply had fallen by nearly 1.2 million barrels a day as a result of the winter storms that hit Texas and other oil-producing regions.
The most important factor stopping oil from making bigger gains remains the Covid-19 crisis in India, which recorded yet more record high numbers of new cases and deaths over the weekend.
Short-term mobility indicators from the subcontinent continue to imply a sharp drop in fuel consumption, and the holding of elections over the weekend in various states also removes a political hurdle to further restrictions on travel.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
by : Investing.com