Oil Markets Surge on Positive Global Economic Data

by Nick Bond, KPI Bridge Oil
Thursday August 1, 2013

Oil markets were on a tear today as positive economic data from around the world signaled bright future demand for crude to investors.

To start off, the Chinese Purchasing Managers' Index for July showed a reading of 50.3, outpacing analysts' average forecasts of 49.8. 

The reading over 50 indicates expansion to investors and therefore anticipation of higher crude demand.

Europe's manufacturing sector expanded for the first time in two years, showing signs that the region could be pulling out of recession.

The two positive manufacturing numbers helped to ease concerns that global economic growth is slowing.

Stateside, the Institute for Supply Management reported that the U.S. Manufacturing index climbed to 55.4 in July from 50.9 in June which helped to extend the gains already in motion.

The Labor Department also reported that the number of new claims for unemployment benefits dropped to a five-year low, better than projected by most analysts.

Tomorrow the department will release employment data for the month of July, which some are anticipating will be positive and help continue the recent move up, though others feel oil could back off slightly after the recent run-up.

WTI rose $2.86 to settle at $107.89/bbl today and Brent climbed $1.84, settling at $109.54/bbl. Bunker prices were firm in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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