Strong ISM Data Drove Risk Rally

Crude oil almost erased all losses made in the beginning of the week with the strong rebound driven by surprising improvement in US ISM manufacturing data. Although the US Energy Department reported for a second consecutive week, draws in gasoline and distillate inventories soothed market concerns. Settling at 73.91, the front-month WTI contract gained +2.77% on the first trading day of September. What worth noting is the jump of heating oil price to a 3-week high of 2.058 before closing at 2.041, up +2.48%, as distillate stockpile dropped for the first time in 14 weeks. Distillate demand also gained more than +8% during the week. Notwithstanding the volatile nature of the data, the increase together with strong ISM manufacturing data, boosted sentiment.

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Strong ISM Data Drove Risk Rally