After falling on Wednesday, crude oil prices regained strength and rose to seven-week high levels. The market sentiment improved after the surprise fall in crude oil inventories.
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According to data released by the API (American Petroleum Institute), crude oil inventories fell by 0.884 MMbbls (million barrels) in the week ending on February 17. The inventory levels fell when the market expected a build of 3.3 MMbbls. The market is looking forward to crude oil inventory data from the U.S. Energy Information Administration. The data will be released at 10:30 AM EST today.
At 6:10 AM EST on February 23, the West Texas Intermediate crude oil futures contract for April 2017 delivery was trading at $54.33 per barrel—a gain of ~01.4%. The Brent crude futures contract for March 2017 delivery rose ~1.40% to $56.62 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $38.66 after falling 2.9% on February 22.
After showing weakness for two consecutive trading days, copper prices fell in the early hours on Thursday. The market sentiment was dented by news about new property tax in China. Considering that China is the largest copper consumer, China’s economic and demand concerns will impact copper prices. At 6:20 AM EST on February 23, the COMEX copper futures contract for March 2017 delivery was trading at $2.71 per pound—a fall of ~0.73%. The PowerShares DB Base Metals ETF (DBB) rose 0.03%, while the SPDR S&P Metals & Mining ETF (XME) fell 1.7% on February 22. Gold (GLD) and silver (SLW) are stable in the early hours due to economic uncertainty in US markets after the Fed’s statement. Platinum and palladium are weaker in the early hours.