Factories in the U.S. have cranked into a higher gear and increased factory activity usually means increased demand for diesel because manufacturers are big users of diesel fuel.
The Institute for Supply Management, a trade group of purchasing managers, reported that U.S. manufacturing grew in March at a faster pace than February. U.S. factories added 100,000 jobs in the past three months to help fill a growing list of new orders.
Benchmark U.S. crude increased Monday by $1.61 to $104.63 per barrel in New York while Brent crude rose by $1.55 cents to $124.43 per barrel in London.
Geopolitical tensions over Iran’s nuclear program have also caused an increase in oil prices. Iran exports 2.4 million barrels of oil each day. The U.S. and Europe have imposed sanctions that aim to make it more difficult to finance those exports. Traders are betting that if that oil comes off the market, world supplies will tighten this year.
Meanwhile, natural gas futures fell to a 10-year low, losing 2 cents to $2.106 per 1,000 cubic feet. Natural gas prices have plummeted this year following a production boom that could push U.S. supplies close to their maximum capacity later this year.
In other energy trading, heating oil added 6.35 cents to $3.2336 per gallon and gasoline futures increased by 6.23 cents to $3.3704 per gallon.
