Positive Start for Oil in July on Stronger Economic Data

Oil futures rose on Monday, buoyed by positive economic data from the U.S., Japan and the euro zone.

Crude for August delivery CLQ3 -0.05% rose $1.43, or 1.5%, to end at $97.99 a barrel on the New York Mercantile Exchange.

The contract climbed to an intraday high of $98.28, according to FactSet.

Upbeat economic data bolstered oil prices.

The Institute for Supply Management’s manufacturing index improved after three months of declines, rising to 50.9% from 49.0% in May. Any number above 50% signals that business is expanding instead of shrinking.

European data also showed gains for manufacturing activity, as measured by purchasing managers’ indexes. Only Germany’s PMI was revised down.

And the Bank of Japan’s “tankan” survey showed sentiment among large manufacturers turned broadly positive in the April-June quarter for the first time in almost two years.

“These are all forward-looking manufacturing data, and they were all positive,” said Jason Schenker, president and chief economist at Prestige Economics LLC in Austin, referring to the Japanese, U.S. and European data.

MarketWatch

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