Crude oil rises on news of stronger than anticipated U.S. manufacturing

02-Jun-10

The Institute for Supply Management's manufacturing index fell to 59.7% in May from 60.4% in April, while the consensus forecast called for a decrease to 59%. This stronger than anticipated growth in key economic indicator has propped up oil prices. Oil for July delivery rose to US$74.3 on the Nymex, after falling on the last day of the previous month. On Monday, the dollar weakened against a basket of major currencies, but trade was thin with public holidays in the U.S. and U.K. Oil opened lower on a rising dollar, weak prospects for U.S. equities and demand from China.