Written on: June 1, 2026
Monday, June 1, 2026
Crude oil and ULSD futures are seeing gains of over 1.5% on Monday amid news of renewed US-Iran clashes over the weekend and mostly higher global equities, despite some strength in the US dollar index. Market participants are looking ahead to the final May US Manufacturing PMI, the ISM Manufacturing Index and to US construction spending data for further direction.
Bloomberg News reports that the US struck Iranian radar and command-and-control sites over the weekend after a drone was shot down over international waters. Bloomberg also reports that Kuwait said its air defenses were responding to “hostile missile and drone attacks” Monday morning.
In China over the weekend, the final Manufacturing PMI for May came in at 50.0 matching the flash reading and down from 50.3 in April. Asian markets closed flat-to-higher overnight as the China’s Shanghai Composite edged down 0.27%, while Hong Kong’s Hang Seng rose 0.86% and the Nikkei in Japan gained 0.91%. In India, the HSBC Manufacturing PMI was finalized at 55.0 in May, above the 54.3 flash estimate. In economic news from Europe, the final S&P Global Manufacturing PMI for May in France (49.7), Germany (50.1), the Eurozone as a whole (51.6), and the UK (53.9) all came in above their 48.9, 49.9, 51.4, and 53.7 flash readings, respectively. The Eurozone unemployment rate held steady at 6.3% in April, as expected. European shares were trading flat to higher this morning as the UK FTSE 100 had edged down 0.1%, while the French CAC 40 had added 0.1% and the German DAX had risen 0.4%. Futures for the major US stock market indexes are seeing gains of between 0.2% (Nasdaq futures) and 0.7% (Dow futures). As of this writing, the US dollar index was up 0.1%, which is unsupportive for crude oil prices.
The official start of hurricane season is today, and the National Hurricane Center (NHC) sees no tropical cyclone activity in the Atlantic over the next 7 days.