U.S. oil prices rose yesterday in response to hopes that interest rate cuts could be on their way.  According to the S&P flash U.S. manufacturing survey showed American manufacturing fell to a four month low in March, with a reading of 49.9.  A reading below 50 suggests the economy is contracting, which could push the Fed to cut rates sooner rather than wait for later in the year.

U.S. Oil Prices Rise as Manufacturing Slows

First up, oil prices rose yesterday in response to hopes that interest rate cuts could be on their way. According to the S and P Flash Us Manufacturing survey did show that American manufacturing fell to a four month low in March with the read of 49.9. While a reading below 50 does suggest the economy is contracting which could push the fed to cut rates sooner rather than wait for later in the year. At the close on Tuesday, crude oil was $83 a barrel. That's below this year's peak price of about $87 a barrel. And so far oil prices haven't reacted strongly to the additional sanctions placed on Iran, one of the world's biggest oil producers. But if passed, the US could sanction foreign facilities that are known to produce Iranian oil. And if fully implemented that could raise energy prices, but the president would retain the ability to waive the sanctions.