Black Gold Sees a Follow Through Rally Off Yesterday’s U.S. Manufacturing Data

“Oil traded near the highest close in a week after a measure of U.S. manufacturing beat economists’ forecasts and before a report forecast to show shrinking fuel supplies in the world’s biggest consumer of crude.

Futures were little changed in New York after advancing for a third day yesterday. The Institute for Supply Management’s U.S. factory index increased to 51.5 in September, exceeding the median forecast of 49.7 in a Bloomberg News survey. Crude supplies in the U.S. probably gained last week, while gasoline and diesel inventories shrank, according to a separate survey.

“We’ve seen a bounce off recent lows, and I think the primary motivator was the ISM figure,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “It points to the fact that we’re seeing what looks like an improvement in the rate of growth in the U.S. economy.”

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