FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Weaker US Manufacturing Data to Put Pressure on Diesel

OIL PRODUCTS

A stagnant manufacturing sector is likely to keep the pressure on diesel markets, which are under pressure with the prompt structure in contango.

  • US manufacturing contracted in April after briefly expanding in March. The ISM manufacturing index missed in April, falling to 49.2 (cons 50.0), while the S&P Global US manufacturing PMI was 50.0 (prelim and cons 49.9) in April.
  • Diesel demand is often used as a fuel in the manufacturing sector, and the stagnant activity will offer little reprieve for the product.
  • Four-week average US distillates implied demand remains well below seasonal normal levels and down 8.3% on the year.
  • The recent manufacturing data, coupled with returning refinery runs, are likely to provide further downside to diesel prices, with diesel cracks already at a 13-month lows.
  • Worsening the outlook are also rising prices in the sector, with the Chicago Business Barometer, produced with MNI showing prices paid rose 6.7 points to 69.3, the highest level since August 2023.
  • This could fuel more hawkish sentiment in the Fed, which in turn will stifle further potential diesel demand.
Energy BulletsHomepageBulletCommodities
Energy BulletsHomepageBulletCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.