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US Manufacturing Data Supportive for Diesel

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Recent data showing an improved picture for US manufacturing is likely to be supportive for diesel demand.

  • The US S&P Global May manufacturing PMI was at 50.9 compared to 50 in the prior month.
  • US business activity growth accelerated sharply to its fastest for just over two years in May, according to provisional PMI survey data from S&P Global, signalling an improved economic performance midway through the second quarter. The service sector led the upturn, reporting the largest output rise for a year, but manufacturing also showed stronger growth.
  • Diesel is often used as a fuel in the industrial and manufacturing sectors, so improving output is likely to trickle down into higher diesel consumption.
  • Yesterday’s EIA data also showed a rise on the week in distillate demand, up 52k b/d to its highest level since late March, but still at seasonally low levels.
  • However, the demand baseline is likely lower due to renewable diesel output according to Bloomberg.
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Recent data showing an improved picture for US manufacturing is likely to be supportive for diesel demand.

  • The US S&P Global May manufacturing PMI was at 50.9 compared to 50 in the prior month.
  • US business activity growth accelerated sharply to its fastest for just over two years in May, according to provisional PMI survey data from S&P Global, signalling an improved economic performance midway through the second quarter. The service sector led the upturn, reporting the largest output rise for a year, but manufacturing also showed stronger growth.
  • Diesel is often used as a fuel in the industrial and manufacturing sectors, so improving output is likely to trickle down into higher diesel consumption.
  • Yesterday’s EIA data also showed a rise on the week in distillate demand, up 52k b/d to its highest level since late March, but still at seasonally low levels.
  • However, the demand baseline is likely lower due to renewable diesel output according to Bloomberg.