The bullish sentiment that we saw on the oil markets yesterday following upbeat better-than-expected Empire State manufacturing seems to have faded this morning as oil demand prospects weighed back on crude oil prices.
In the US, The outlook for the factory sector is a little less robust following today`s economic news. Industrial production data show a very weak 0.4 percent decline in manufacturing shipments last month, a drop however that did follow a 0.7 percent rise in July, a month that benefited from this year`s light retooling season. Empire State data for this month are, on the surface, very strong but do show flat growth for new orders and a sharp drop off in hiring.
Futures were little changed in a light session ahead of a heavy calendar highlighted by the FOMC`s decision on Wednesday and retail sales on Thursday.
Manufacturing activity in the New York region was stronger than expected in June, the New York Federal Reserve said Thursday.
Fanning yesterday`s positive sentiment was the Empire State diffusion index of current general activity, which hit its highest reading since October 2009, rising from a reading of 14.69 in August to 27.54 this month.
The upside correction was shortly lived and weighed over by prospects for demand in china, where Industrial production growth slowed to its lowest level since pre-crisis levels, according to data released Saturday, along with weaker fixed-asset investment, retail and real estate sales reports, adding pressure on Beijing to increase stimulus measures to spur growth in the country.
According to the National Bureau of Statistics, industrial production rose 6.9% from a year earlier, camped with the 9.0% in July and analysts` average forecast of 8.8%.
Fixed-asset investment in nonrural China rose 16.5% from a year ago, slower than the 17.0% increase in July. Separately, retail sales also expanded 11.9% from a year ago, yet down from the 12.2% level in July.
As of 04:18 am ET:
- West Texas Intermediate for October delivery fell 0.38% to $92.58 a barrel on the New York Mercantile Exchange
- Brent for October delivery fell 0.25% to $97.65 a barrel on the ICE Exchange in London